Liquidity Rules! Coming to Wall Street via ForexLive

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Oh … wait … I may have misread that headline.

Its not: Liquidity Rules!  Coming to Wall Street

Its: Liquidity Rules Coming to Wall Street

Article out in the Wall Street Journal:

  • U.S. regulators …  efforts to create a safer financial system with rules designed to ensure banks can survive a crisis without running out of cash
  • The new liquidity rules, the first of which will be voted on by the Federal Reserve and the Federal Deposit Insurance Corp. Wednesday, are aimed at preventing the kind of funding crises that helped topple Bear Stearns and Lehman Brothers. But they could alter Wall Street in fundamental ways, including depressing earnings and crimping lending
  • The rules will require firms to load up on ultrasafe assets, which analysts warn may create a drag on banks' earnings since those assets deliver lower returns. Industry officials and other observers say the rules may also lessen banks' appetite for lending when the economy strengthens, since the firms are diverting money they might otherwise lend.

More at the article, though it may be gated: Liquidity Rules Coming to Wall Street

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I reckon my headline is better.

posted via ForexLive

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