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…
Regulators Mandating New Liquidity Rules For Large Banks
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
Comments are closed.