Banks would have to hold enough easy-to-sell assets to survive a 30-day credit drought under a rule to be proposed today by the Federal Reserve that may have the greatest effect on banks with big trading operations such as JPMorgan Chase & Co. and Goldman Sachs Group Inc., Bloomberg News reported today. The demand for 30 days of liquidity is intended to satisfy global Basel III accords for strengthening the financial system. Increasing the banks’ liquid assets is meant to make them less vulnerable in a crisis like the one that struck in 2008. In January, the Basel Committee on Banking Supervision agreed on a liquidity coverage ratio meant to ensure that banks can survive a 30-day credit squeeze. The standard to be fully implemented by 2019 allows lenders to go beyond cash and low-risk sovereign debt to an expanded range of assets including some equities and securitized mortgage debt, according to the agreement.
