U.S. Government Securities: Dealer Views on Market Operations and Federal Reserve Oversight

In response to a congressional request, GAO reviewed the Federal Reserve System's oversight of the U.S. government securities market, specifically: (1) the impact of recent dealer failures and other market disturbances; (2) the effectiveness of the Federal Reserve Bank of New York's (FRBNY) market oversight; (3) whether there is a need for new federal regulation of the U.S. government securities market; (4) FRBNY voluntary capital adequacy guidelines for dealers not subject to federal regulatory oversight; (5) the structure and function of the U.S. government securities market; and (6) access to inter-dealer broker wires.