• Bank Liquidity Requirements: Federal Reserve Proposes Inclusion of Certain U.S. Municipal Securities as High-Quality Liquid Assets for Purposes of the Liquidity Coverage Ratio
  • June 4, 2015 | Authors: Whitney A. Chatterjee; H. Rodgin Cohen; Elizabeth T. Davy; Mitchell S. Eitel; Michael T. Escue
  • Law Firm: Sullivan & Cromwell LLP - New York Office
  • On Thursday, May 21, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) issued a notice of proposed rulemaking (the “Proposal”) that would amend the final rule implementing a liquidity coverage ratio (“LCR”) requirement (the “Final LCR Rule”),1 jointly adopted last September by the Federal Reserve, the Office of the Comptroller of the Currency (“OCC”), and the Federal Deposit Insurance Corporation (“FDIC”), to treat certain general obligation state and municipal bonds as highquality liquid assets (“HQLA”).2