There is nothing in either of these reports to immediately concern decision makers.
* * * * * J B K * * * * *
San Francisco
March 17 (Bloomberg) -- The Federal Reserve, the Office of the Comptroller of the Currency and four other bank supervisory agencies released guidelines for liquidity risk management to deter the funding practices that contributed to the financial crisis.
"Given the recent market turmoil, the agencies are reiterating the importance of effective liquidity risk management for the safety and soundness of financial institutions," the agencies said today in a release. The guidelines emphasize the need for diversified funding sources, stress testing and a contingency funding plan, they said.
The Fed and other banking supervisors are reasserting their existing authority without waiting for Congress to complete an overhaul of financial regulation. The agencies are raising standards for capital, liquidity and risk management, and increasing their control over compensation policies. In January, regulators issued guidance on managing interest rate risk.
http://www.bloomberg.com/apps/news?pid=20601087&sid=arGN45fk0JMQ&pos=4
