Aug. 10, 2022
August 10, 2022 I oppose the proposed passage of SR-OCC-2022-802 titled \"Notice of Filing of Advance Notice Related to a Master Repurchase Agreement as Part of The Options Clearing Corporations Overall Liquidity Plan\". The OCC now believes that it should seek to expand its liquidity facility to increase OCC's access to cash to manage a member default. The OCC already has access to a lot of sources for cash so they want to add to these sources a master repurchase agreement (\"MRA\"). If a bank is participating in an MRA with the OCC to buy securities and give cash to the OCC, then Fails To Deliver those securities back to the OCC because they're broke, the OCC will just agree this isn't an event of default. Are these institutions too big to fail? If so, they should be disbanded. Most loans have had cross-default provisions that state if someone defaults with one lender, they automatically are in default with all lenders. Most loans have this to protect the lenders. Doing so would ultimately shift the financial fallout from those responsible for taking excessive risks to the American taxpayer. OCC members are responsible for taking financial risks and should be held accountable in times of Market Disruption. No member is too big or important to avoid default. No one is above the law. Or are they? Is this free market capitalism?