High Quality Liquid Assets

This is not about top-shelf liquor, it is about today's notice of proposed rulemaking.... At an open meeting today, the Federal Reserve Board ("FRB") approved a proposed rule implementing a liquidity coverage ratio ("LCR") requirement (the "Proposed Rule"), written jointly with the Office of the Comptroller of the Currency ("OCC") and the Federal Deposit Insurance Corporation ("FDIC," and collectively, with the FRB and the OCC, the "Agencies").¹ With certain exceptions noted below, the Proposed Rule is broadly consistent with the Basel Committee on Banking Supervision's LCR standard (the "Basel LCR Standard") issued in 2010.² We will supplement this alert with a more detailed analysis in the coming days.