Sorry, this article is not free to read. Basically, it says French banks are taking advantage of a difference in regulation to become dominant players in the US Treasury repo market. (The data behind the article was sourced from the OFR, my employer.) Dominant, that is, until quarter-end window dressing forces them out.
US banks have to report balance sheets every day, while the French banks only report quarterly. So the French banks play big in the repo market until the last day of the quarter, when they close out all the trades and pretend everything is fine and no, there is no gambling in this establishment.
Not that repo is gambling, it is the exact opposite – about the safest thing you could do with money. Safe, that is, until your counterparty evaporates every 90 days, or has come to rely on repo and then very inconveniently can’t access the repo market because it is quarter-end. Liquidity squeezes can take many forms.
Aligning regulatory regimes across the globe is absolutely necessary in a global capital market. Post-crisis regulatory reform still has far to go, even as people start to forget what all the shouting was about in 2008 (so long ago!) and why can’t I gamble with other people’s retirement funds?