Here’s What Drove the Repo Rate Higher

• Question: Why are banks with excess reserves about $1.3T not lending to the banks that need them? These banks have deposited their excess reserves at the FedRes earning 1.8-2.0% but the overnight repo market is offering them as high as 10%. So, what is going on here? A clear loss of trust between banks. Not a good sign. Are the banks with the massive excess reserves fearing a collapse of those bank/banks that need the money?
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• CNBC Television
  Beth Hammack, global treasurer at Goldman Sachs and the chairwoman of the Treasury Borrowing Advisory Committee, joins “Squawk Box” to discuss the Fed’s repo operation.

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