TMPG as important as any government lending program

The focus of the credit crisis has been on government provding funds to substitute for the failure from private lending, yet some of the rules and regulations can be changed to enhance private lending and liquidity. The Treasury Market Practices Group (TMPG) may be as important public -private partnership through setting standards in the Treasury market. In particular, suggested changes in the repo market where there has been a significant increase in the number of trading fails may be an important mechanism for normalizing lending in Treasuries. Increased liqudity in the repo market is imperative to better establish a lqiudity for makret maket-makers. This issue has to be solved before the spike in Treasury issuance hits the markets.