### POV, WK'S REPURCHASE OPERATIONS.........>

US TSYS: ### POV, WK'S REPURCHASE OPERATIONS QUESTIONS Why did the NY Fed pick

$75b as a limit? Was it arbitrary, why not $100 or even $200B to show they were

serious to quash any funding concerns? If they provided too high of a limit or

even no limit, could it have given the impression of an ensuing panic? 

- Though submissions' gradual increase ($53.15B Tue, $80.05B Wed, $83.875B Thu)

$75B seemed good starting point w/ submissions just over limit at $75.55B today.

While some money market pros expressed interest in a higher limit to tamp down

any concerns into quarter end, the NY Fed likely polled primary dealers daily to

get a feel for where "repo will clear w/o its intervention. One bit of key data

will come from hard-to-see markets and how Fed calming repo will support repo

for ABS, lower-rated CP, etc." one desk posited. "$75B was just larger than the

observable cash drain on Mon, so the Fed had approval for that size if needed".

- There is some speculation the Fed will pressure primaries hard to solve this

problem "whatever it takes" and get off their case. Rumors make rounds that NY

Fed mkt head Simon Potter "gave private speech saying he thinks Fed will

announce term repo op either today or tomorrow to cover end of quarter."