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Avoiding Collateral Damage: Lessons of Lehman [Part II]

In light of the banking failures of Silicon Valley Bank, Signature Bank and First Republic (as well as Credit Suisse), this summer, the Federal Reserve and the FDIC proposed guidance and rules for larger banks to (i) develop...more

Repo Market Disruptions: In Reverse (Part II)

Based upon the records of the New York Fed and the Federal Reserve Economic Data (FRED) of the St. Louis Fed, the level of reverse repo activity on June 17th -18th reached unprecedented levels. It was previously reported...more

Repo Market Disruptions: In Reverse

It was previously reported that there were significant repurchase agreement (repo) disruptions with consequent disruptions in the Secured Overnight Financing Rate (SOFR). Explained - During the market turmoil...more

Municipal VRDO Class Action Survives Banks’ Request for Dismissal

Financial institutions should work with outside counsel to ensure that their internal policies and external actions minimize conduct that may violate state and Federal laws and regulations, and incentivize employees to reward...more

The End of LIBOR: Crucial Liquidity Measures by the Federal Reserve System

In order to deal with the tremendous recent market disruptions and related liquidity needs, the Federal Reserve System, through the Federal Reserve Bank of New York (New York Fed), on March 12 offered $500 billion in 3-month...more

The End of LIBOR: Further Market Liquidity Issues in Light of Market Turmoil

Last week, most observers focused on the more than 11% drop in the stock market due to public health and related supply concerns. In response, the Federal Reserve made an aggressive 50 basis point interest rate cut on March...more

The End of LIBOR: SOFR and Related Updates

Fed Liquidity – Recent Actual Infusions (1Q 2020) - Week of February 3rd - As recently reported, during the week of February 3rd, the New York Fed infused, through the repo market, an aggregate of $112.3 billion with...more

The End of LIBOR: SOFR Updates

Previous Repos - In the last Client Alert, it was reported that the New York Fed recently infused approximately $220 billion into the banking system – $70 billion of overnight repos and $150 billion in term repos....more

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