Although the catalyst that led to this record amount of fails in treasuries, spiking at $2 trillion, was the collapse of Lehman Brothers, it is the settlement system and lack of regulatory oversight that has led to this risk of market failure.
As attention focuses on the treasury market's ability to cope with the US's growing funding needs, Euromoney reveals the structural issue that could cause the world's market of last resort to grind to a halt in its hour of greatest need.
For years, efforts by the US Treasury itself to formally resolve the growing fails issue have been brushed aside by market participants as unnecessary.
The US treasury market, the foundation of government bond and corporate bond markets worldwide, is suffering a crisis of confidence at the worst possible moment.
“Until there is clarity on this programme, issuers will remain wary of issuing and investors will remain wary of investing.
“This is an interesting case of testing the principle of a conflict of interest”
Mulyani addresses Indonesia's currency troubles, the rumours that she tended her resignation over new developments in the Bakrie saga and the question of her own political ambitions
“We don’t want people to not trust our efforts to safeguard the currency and the economy”
The outlook for EMEA’s banking systems is generally negative, however the extent differs significantly across economies and markets, and even within markets.