Back then, he was working at the Federal Reserve investigating the plumbing of the credit world. When Lehman Brothers collapsed in 2008, he saw how unexamined interlinkages in the market’s financial “pipes” could generate unexpected shocks, particularly in the tri-party repurchase sector (where short-term loans are extended against collateral between multiple parties). Today, however, Poszar is pondering whether a similar chain reaction might occur as a result of western sanctions on Russian institutions.
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