Financial Times FT.com

Fed presses Wall Street banks on liquidity

By Francesco Guerrera and Aline van Duyn in New York

Published: August 10 2008 22:31 | Last updated: August 10 2008 22:31

US regulators are putting pressure on Wall Street banks to ensure they have enough liquid funds to withstand a financial shock as part of efforts to avoid a repeat of the “run on the bank” that sank Bear Stearns.

Bankers say that in the past few months the Federal Reserve has asked them to put balance sheets through a battery of tests to see how they would fare in a major liquidity shortage or sudden downturn in capital markets.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this