The US Federal Reserve is considering dramatic changes to the giant “repo” markets where banks around the world raise overnight dollar loans – including creating a utility to replace the Wall Street banks that now handle transactions, people familiar with the matter say.

The Fed deliberations are partly motivated by concerns that the structure of the US overnight repurchase market may have exacerbated the financial turmoil that accompanied the failure of Lehman Brothers in September 2008.

Fed officials plan to meet next month with market participants to discuss potential reforms. People familiar with the Fed's thinking say it is looking into the creation of a new mechanism to replace the clearing banks – the biggest of which are JPMorgan Chase and Bank of New York Mellon – that serve as intermediaries between borrowers and lenders in the repo market.