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U.S. bank regulators set to adopt liquidity, swaps margin rules 

September 4, 2014
Emily Stephenson, Reuters

U.S. bank regulators plan to adopt on Wednesday rules forcing big banks to hold more assets that they could sell easily in a credit crunch, a requirement that is closely linked to the experience of the 2007-2009 financial crisis.

Regulators also will unveil a separate proposal governing how much money swaps buyers and sellers must set aside when they make trades outside central clearing houses.

The rules from the Federal Reserve, Federal Deposit Insurance Corp (FDIC) and Office of the Comptroller of the Currency (OCC) are part of a series of reforms aimed at making banks sturdier and heading off another economic meltdown.

The liquidity rules, which call for big banks to hold enough liquid assets to meet their cash needs for 30 days, are a key pillar of the international agreement known as Basel III. They aim to ensure banks have easy-to-sell assets on hand so they could meet customer withdrawals or post collateral in a crunch.

Read more: Reuters

 
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