Fed Proposes Liquidity Requirements for Big Banks

To weather another financial crisis

  • Share
  • Read Later

The Federal Reserve proposed Thursday that big banks should keep enough government bonds, cash and additional high-quality assets to weather a financial crisis similar to 2008.

This would mark the first time U.S. banks would be subjected to “liquidity” requirements—the ability to access cash quickly—which were set by Congress after the last collapse with the intent to prevent another meltdown worthy of a taxpayer-funded bailout, or worse, the Associated Press reports.

The rules would be phased in beginning in January 2015.