Fed Proposes Strict New Liquidity Rules For Big Banks

Law360, New York (October 24, 2013, 12:16 PM EDT) -- The Federal Reserve on Thursday released a proposal for requiring the largest banks to hold enough liquid assets to survive a financial shock that U.S. regulators say goes beyond international liquidity guidelines.

The Fed's liquidity proposal, part of the Basel III international banking accords, require banks to hold a minimum level of high-quality liquid assets that they can easily convert into cash when sudden crises strike their balance sheets. The rule would require banks to hold enough high-quality liquid assets to cover their cash needs for...
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