Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Join the forum, it's quick and easy

Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


3 posters

    Fed Proposes Big Banks Hold More Cash, Assets

    Zuzu
    Zuzu
    Zuzu
    Cain't Let Go Investor
    Cain't Let Go Investor


    Posts : 264
    Join date : 2012-12-20
    • Post n°1

    Fed Proposes Big Banks Hold More Cash, Assets Empty Fed Proposes Big Banks Hold More Cash, Assets

    Post by Zuzu Thu 24 Oct 2013, 2:59 pm

    Fed Proposes Big Banks Hold More Cash, Assets
    WASHINGTON October 24, 2013 (AP)
    By MARCY GORDON AP Business Writer



    Fed Proposes Big Banks Hold More Cash, Assets AP_logo_update_20130709

    The Federal Reserve on Thursday proposed that big banks keep enough cash, government bonds and other high-quality assets on hand to survive during a severe downturn on par with the 2008 financial crisis.

    The proposal subjects U.S. banks for the first time to so-called "liquidity" requirements. Liquidity is the ability to access cash quickly.

    The largest banks — those with more than $250 billion in assets — would be required to hold enough cash and securities to fund their operations for 30 days during a time of market stress. Smaller banks — those with more than $50 billion and less than $250 billion — would have to keep enough to cover 21 days.

    Fed officials said the rules are stronger than new international standards for banks. Combined, the largest banks would have to hold an estimated $2 trillion in high-quality assets to meet the requirement. The banks already hold roughly 90 percent of that amount, according to the Fed.

    The public has 90 days to comment on the proposal, which was approved unanimously by the Fed's 6-member board of governors. After that the rules would be phased in beginning January 2015.

    "Liquidity is essential to a bank's viability and central to the smooth functioning of the financial system," Fed Chairman Ben Bernanke said. He said the new regime "would foster a more resilient and safer financial system in conjunction with other reforms."

    The requirements were mandated by Congress after the financial crisis. They are part of new regulations that are intended to prevent another collapse severe enough to require taxpayer-funded bailouts and threaten the broader financial system.

    Hundreds of U.S. banks received federal bailouts during the crisis. Among them were the largest financial firms, including JPMorgan Chase, Goldman Sachs, Citigroup, Bank of America and Wells Fargo. The banking industry has been recovering steadily since then, with overall profits rising and banks starting to lend more freely.

    The health of the financial sector surfaced during this month's stalemate over increasing the government's borrowing authority. Worries about a possible U.S. debt default raised questions about how well prepared banks and companies were to deal with a crisis.

    Several Fed governors said Thursday that related requirements also are being considered, such as a mandate for large banks to test their liquidity under stress conditions.

    The requirements proposed Thursday are "an important step forward but there's still more work to do," said Fed Vice Chair Janet Yellen, who has been nominated by President Barack Obama to succeed Bernanke as chairman next year.

    http://abcnews.go.com/Business/wireStory/fed-proposes-big-banks-hold-cash-assets-20668495
    • Back to top
    Wayne Irby
    Wayne Irby
    Wayne Irby
    Cain't Let Go Investor
    Cain't Let Go Investor


    Posts : 358
    Join date : 2012-12-27
    Age : 68
    Location : back in N.Ga.!
    • Post n°2

    Fed Proposes Big Banks Hold More Cash, Assets Empty Re: Fed Proposes Big Banks Hold More Cash, Assets

    Post by Wayne Irby Thu 24 Oct 2013, 4:31 pm

    I see this as a good thing, they should be able to stand on their own w/o bailouts, to me there should be no such thing as "Too Big to Fail!", we as individuals don't have the government to bail us out if we are not responsable with our money so why should we as taxpayers have to bail out the big banks!
    • Back to top
    fonz1951
    fonz1951
    fonz1951
    Interacting Investor
    Interacting Investor


    Posts : 2666
    Join date : 2012-12-19
    • Post n°3

    Fed Proposes Big Banks Hold More Cash, Assets Empty Re: Fed Proposes Big Banks Hold More Cash, Assets

    Post by fonz1951 Thu 24 Oct 2013, 4:56 pm

    Wayne Irby wrote:I see this as a good thing, they should be able to stand on their own w/o bailouts, to me there should be no such thing as "Too Big to Fail!", we as individuals don't have the government to bail us out if we are not responsable with our money so why should we as taxpayers have to bail out the big banks!
    totally agree, big banks or big business. if you have been in business for a hundred years and can't turn a profit, you don't need to be in business.
    • Back to top
    Sponsored content

    Sponsored content


    • Post n°4

    Fed Proposes Big Banks Hold More Cash, Assets Empty Re: Fed Proposes Big Banks Hold More Cash, Assets

    Post by Sponsored content

    • Back to top
      Current date/time is Fri 19 Apr 2024, 2:11 am