Regulators Mandating New Liquidity Rules For Large Banks
In a market crash, the large banks could be forced to become more liquid, but does this change to policy address the real issue? New guidelines for large banks liquidity U.S. bank regulators are voting on new guidelines that would force the large banks to have liquid assets to fund operations for 30 days should the market crash again as it did in 2008. Large U.S. banks are currently $100 billion short of the safe asset requirement if the rule under consideration is enacted. During the 2008 market crash, 12 of the 13 large banks faced an immediate need for cash...