Bank Liquidity Rules: Banks Left Guessing

 

Bloomberg has an interesting article related to the Liquidity Rules approved on 9/3/2014.  The new rules appear to be somewhat ambiguous regarding the treatment of CMOs and the rules lack a consistent treatment.  Banks may be required to justify the inclusion of a security as a High Quality Liquid Asset.  The new rules include state, “…potentially require additional evidence to justify its ready marketability,…”

Bloomberg article