Since Wells Fargo (WFC) has been freed from a U.S.-imposed cap on its assets last year, the company has funneled over $200B into the repo market, which has links to money-market funds, dealers, and Treasuries, Alex Harris, Yizhu Wang, and Carter Johnson of Bloomberg reports. In the same month Wells Fargo was freed, the Federal Reserve floated rule changes to make it easier for big banks to step into this market. The leverage is helping fuel the bank’s growth with relatively little risk.
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