Fed may allow banks to use muni bonds to meet liquidity rules: WSJ

April 17, 2015 4:03 AM

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Fed may allow banks to use muni bonds to meet liquidity rules: WSJ

(Reuters) - The U.S. Federal Reserve may allow big banks to use some municipal bonds to meet new liquidity rules that ensure they have enough cash during a credit crunch, the Wall Street Journal reported, citing people familiar with the matter.

The Fed had excluded debt issued by cities and states when it approved liquidity rules for large banks in September, part of a global effort to make banks such as JPMorgan Chase and Citigroup more resilient in a financial crisis.

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