. On the other hand, entering in a repo increases the future debt burden of the bank. We show, if the competitive repo …

rules such as the automatic stay that enjoins debt collection, rules against prebankruptcy fraudulent transfers, and rules …

and brokerdealers produce – and are victims of – most of the externalities, leverage and linkages of financial …

by a combination of repos, long–term debt, deposits and equity. Repos are a cheap source of funding, but they are subject …; second, it adds to the cost of long–term debt financing. These shadow costs limit the bank's appetite for cheap but unstable … depositor preference rule. We also analyze the impact of a liquidity coverage ratio, payout restrictions and a leverage ratio on …