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U.S. Liquidity Rules Aim To Make Banks Boring Again 

September 5, 2014
Ciaran McEvoy, Investor's Business Daily

In the ongoing effort to make banks safer and — in the minds of some observers — banking more boring, U.S. regulators are approving new liquidity rules to ensure that lenders don't run out of money in the event of another financial crisis.

The Federal Reserve approved the rules at a meeting Wednesday. The Federal Deposit Insurance Corp. is scheduled to approve the same rules later today. The Office of the Comptroller of the Currency has already approved them.

The liquidity rules, with some tweaks, are largely those first proposed in October 2013. They are in response to banks being caught short of cash when the Great Recession's grip tightened during 2008. They also are an important component of Basel III, an international agreement to ensure the safety of major lenders such as Bank of America (NYSE:BAC), JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC).

Read more: Investor's Business Daily

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