For traders of commercial enterprises, deposits are used to finance long positions, to access cheaper financing costs of other speculative investments and to cover short positions in securities. Investment bank Lehman Brothers used deposits dubbed “repo 105” and “repo 108” as a creative accounting strategy to support its profitability reports for a few days during the reference season, and incorrectly characterized deposits as true sales. New York Attorney General Andrew Cuomo said the practice was fraudulent and took place under the authority of the audit firm Ernst and Young. Accusations have been laid against E-Y, according to which the company authorized the practice of using deposits for “the secret removal of tens of billions of securities from Lehman`s balance sheet in order to give a false impression of Lehman`s liquidity and to mislead the public invested”. [19] Since triparti agents manage the equivalent of hundreds of billions of dollars in global guarantees, they have the scale to subscribe to multiple data streams to maximize the coverage universe. As part of a tripartite agreement, the three parties to the agreement, tripartite representatives, collateral/cash suppliers (“CAP”) buyers and repo sellers (“COP”) agree on a protection management agreement, including a “legitimate collateral profile.” In 2008, attention was drawn to a form known as Repo 105 after the Collapse of Lehman, since Repo 105s would have been used as an accounting ploy to mask the deterioration of Lehman`s financial health. Another controversial form of buyback order is the “internal repo,” which was first highlighted in 2005. In 2011, it was proposed that, in order to finance risky transactions on European government bonds, Rest could have been the mechanism by which MF Global endangered several hundred million dollars of client funds before its bankruptcy in October 2011. Much of the deposit guarantee is obtained through the re-library of other customer security. [22] [23] Pension transactions are generally considered safe investments, since the security in question is a guarantee, which is why most contracts involve U.S.

government bonds. Considered an instrument of the money market, a pension purchase contract is indeed a short-term loan, guaranteed by security and an interest rate. The buyer acts as a short-term lender, the seller as a short-term borrower. The securities sold are the guarantees. This will help achieve the objectives of both parties, namely the guarantee of financing and liquidity. Despite the similarities with secured loans, deposits are actual purchases. However, since the purchaser only temporarily owns the guarantee, these agreements are often considered loans for tax and accounting purposes. In the event of bankruptcy, pension investors can, in most cases, sell their assets. This is another difference between pension credits and secured loans; For most secured loans, insolvent investors would remain automatic. When the Federal Reserve`s open market committee acts in open market transactions, pension transactions add reserves to the banking system and withdraw them after a specified period; Rest first reverses the flow reserves, then add them again.