Monday, March 19, 2018

HORRIFIC Under New Bank Regulations Municipal Bonds Are Considered a Highly Liquid Asset

This is bad.

The eagle-eyed Bill Bergman spotted the change.

What's going on now is not real deregulation where government is getting out of the bank regulation business but just changes in regulation that benefit banksters and others.

Municipalities are now part of the "others" that benefit, since the new regulations that rank muni bonds as highly liquid will provide incentive for commercial banks to hold them rather than make commercial loans.

-Robert Wenzel 


  1. As you have probably guessed, I'm not an economist. Maybe you could walk some of us dimmer bulbs through this and explain just what is going to go wrong.

  2. See e.g. , , , ,

  3. See also the link below. And consider how only "investment grade" securities qualify for HQLA status. More lessons unlearned.