"US repo sector could face crackdown" says FT.com via Yahoo. Today's story says that the New York Federal Reserve's William Dudley recently told bank and investment compliance officers in New York that "a heavy-handed [regulatory] response can be avoided if banks and investment groups adopt a new set of principles". According to SIFMA's latest research, the average daily volume of the repurchase agreement or repo market was $5.8 trillion in the first quarter of 2007.