Liquidity requirements

Regulators issued a rule that gives banks the OK to dip into capital to help households and businesses cope with the economic impact of the coronavirus.

Policymakers could recommend banks establish backup facilities and the Federal Reserve could stand ready with emergency loans to limit economic shock waves.

The Treasury secretary suggested a role for lawmakers in containing any fallout with financial contracts stemming from the transition to a new interest rate benchmark.

Federal Reserve officials said they contained fallout from the rate spike in the repurchase agreement market, but the episode poses longer-term repercussions for liquidity rules, the transition to a new interest rate benchmark and other issues.

The Bank of England fined Citi $57 million for failing to properly report capital and liquidity levels at its European investment bank and other global operations.

Federal Reserve Chairman Jerome Powell said Wednesday that he does not think revamping capital or liquidity requirements is necessary despite recent volatility in the repurchase markets.

Treasury secretary says regulators could look to help ease liquidity logjam in money markets; workers will get special bonuses for the third straight year.

JPMorgan Chase had the cash and willingness to calm short-term funding markets when they went haywire in mid-September, but the banking giant said regulations held it back.

The central bank finalized a host of regulatory-relief changes mostly benefiting midsize and regional banks that hew closely to proposals issued in April and last fall.

The central bank will consider rules to create a tiered structure for supervising banks with over $100 billion of assets and to ease resolution plan requirements.