U.S. Banks Lack Liquidity to Withstand Crisis, Study Says
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U.S. banks representing more than half the industry’s assets need an additional $840 billion in cash on hand to cover short-term obligations if financial markets seize up again, according to a study.
The 11 financial firms surveyed, which have about $9.2 trillion in combined assets, need the funds in cash, Treasury bonds or other liquid assets to cover 30 days of debt costs and other expenses under international capital rules, according to a report released today by the New York-based Clearing House, which represents 18 of the largest lenders.