WASHINGTON -- Supreme Court Justice Sandra Day O'Connor warned yesterday that a ruling by the court that repurchase agreements are secured loans may have unintended effects on the regulation of such transactions.

Her comments came as the state of Nebraska asked the court to consider repurchase agreements, commonly known as repos, as secured loans for tax purposes. Such a characterization would reflect the "economic substance of the transaction, rather than mere form," the state said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.