'The Federal Reserve, in its role as the financial system's emergency plumber, recently created a task force, pulling together clearing banks, dealers and other investors, so they can strengthen the pipes [repo market].'

...reforming the repo market is where the rubber meets the road for regulators. The use of borrowed money, which can pump up returns, requires a fully functioning repo market as it enables a bank and investors to borrow short-term funds using their securities as collateral. In return, lenders of cash, earn a return and this works well so long as they trust the collateral.