WASHINGTON - Big U.S. banks are using the recent chaos in short-term funding markets as an opportunity to pressure the Federal Reserve to ease liquidity requirements they have long despised.
“Banks have a tremendous amount of liquidity, but they also have a lot of restraints on how they could use that liquidity and how much they have to maintain at the Fed,” JPMorgan Chase & Co CEO Jamie Dimon said at an event in Washington hosted by the Business Roundtable, a corporate trade association he chairs.by its chief economist, Bill Nelson, who said policymakers should rethink liquidity requirements imposed since the 2007-2009 global financial crisis.
Market participants said a confluence of events caused the cash crunch. Corporations withdrew funds from money-market accounts to cover their tax bills. On the same day, banks and investors used idle dollars to absorb $78 billion in U.S. Treasury notes.
Stealing more money? Not enough in those offshore accounts? 💩 Setting up the next QE phase?
We had to bail you bastards out over this the last time. Your greed cost American families their homes my generation hasn’t financially recovered and likely never will. Those regulations exist for one reason because you all made them necessary. Y’all need to sit the F down.
Softer liquidity rules help spur the great recession onward.
Very interesting. Any take on how this can effect mortgage interest rates?
captain of titanic organizes committee to lobby government for fewer lifeboats, sez he hopes their work can be concluded before his rapidly sinking ship slips beneath the waves.