U.S. Stays Close to Basel in Long-Term Liquidity Rule
By John Heltman

WASHINGTON – In the post-financial-crisis regulatory environment, the U.S. has become known for taking a harder line when it comes to domestic implementation of international agreements with the Basel Committee, including with capital and liquidity requirements. But the U.S. agencies hewed surprisingly close to the international agreement in their proposal released Tuesday which would require the largest banks to maintain stable sources of funding over a yearlong period. “In a sense, it is an effort to comply with Basel and keep the framework alive, but not, as in other areas, ‘gold-plate’ it because of the concern here about cumulative impact,” said Karen Shaw Petrou, managing partner of Federal Financial Analytics. “The proposal continues the belt, suspenders and safety net approach to U.S. regulation.”