Federal Reserve Chairman Ben Bernanke said the Primary Dealer Credit Facility will likely be extended as regulators aim to improve the way the tri-party-repurchase market works. The PDCF was created in March as Bear Stearns came precariously close to collapsing and effectively became a backstop for investment banks that use tri-party repo. The move was made not so much because regulators were concerned about a run on Bear Stearns but because of what might have happened to the Bank of New York and JPMorgan Chase, which handle the overwhelming majority of tri-party repo.

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