Elizabeth Warren pushes Treasury Secretary Mnuchin for answers on overnight lending issues

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  • Sen. Elizabeth Warren is pressing Treasury Secretary Steven Mnuchin for answers on recent events in the overnight lending, or repo, markets.
  • In a letter, the Democratic presidential candidate says she worries banks will use the issue as an excuse to get financial regulations eased.

Sen. Elizabeth Warren said she is worried that banks may try to use the recent tumult in short-term lending markets as an excuse to get regulations eased on the industry.

In a letter to Treasury Secretary Steven Mnuchin, the Massachusetts Democrat and presidential contender pointed to the mid-September repo market turmoiland the causes that have been cited for the issues, such as a rush of corporate tax payments and government bond auction settlements that drained money from a system that usually functions smoothly.

A cash crunch in the system saw overnight lending rates spike, with the repo rate briefly hitting 10%.



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