U.S. Banks Skirt Liquidity Rules With Debt Product

29 Jan 2013

U.S. banks are circumventing liquidity rules adopted by the Basel Committee on Banking Supervision with a new type of debt product known as callable commercial paper.

U.S. banks are circumventing liquidity rules adopted by the Basel Committee on Banking Supervision with a new type of debt product known as callable commercial paper. Banks are selling the instruments to U.S. municipalities, which use them as a form of financing, and the firms avoid the liquidity ...

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