{"id":48931,"date":"2019-10-11T07:04:25","date_gmt":"2019-10-11T12:04:25","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48931"},"modified":"2019-10-11T07:04:30","modified_gmt":"2019-10-11T12:04:30","slug":"after-unveiling-notqe-fed-eases-liquidity-rules-for-foreign-banks-rescues-deutsche","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48931","title":{"rendered":"After Unveiling &#8216;NotQE&#8217;, Fed Eases Liquidity Rules For Foreign Banks (Rescues Deutsche)"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/after-unveiling-notqe-fed-eases-liquidity-rules-foreign-banks-rescues-deutsche\">After Unveiling &#8216;NotQE&#8217;, Fed Eases Liquidity Rules For Foreign Banks (Rescues Deutsche)<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.zerohedge.com\/news\/2019-06-27\/fed-approves-capital-return-plans-all-18-banks-even-deutsche\">Having cracked down on Deutsche Bank in the past<\/a>, The Fed appears to be playing good-regulator\/bad-regulator&nbsp;<a href=\"https:\/\/www.ft.com\/content\/cf529274-ead3-11e9-a240-3b065ef5fc55?segmentId=a7371401-027d-d8bf-8a7f-2a746e767d56\">as The FT reports<\/a>&nbsp;that<strong>Deutsche is expected to benefit most from an imminent change in The Fed&#8217;s liquidity rules.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/2019-10-10_10-54-07.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/2019-10-10_10-54-07.jpg?itok=-rRmcXsr\"><\/a>Specifically, US banking regulators have&nbsp;<strong>dropped an idea to subject local branches of foreign banks to tough new liquidity rules<\/strong>(forcing US branches of foreign banks to hold a minimum level of liquid assets to protect them from a cash crunch).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ft.com\/content\/cf529274-ead3-11e9-a240-3b065ef5fc55?segmentId=a7371401-027d-d8bf-8a7f-2a746e767d56\">As The FT further details,<\/a>&nbsp;people familiar with his thinking say Randal Quarles, the vice-chair for banking supervision at the Fed, accepts the banks\u2019 argument that any liquidity rules on bank branches should only be imposed in conjunction with foreign regulators.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cWithout some international agreement,<strong>&nbsp;we could have the situation where each country is trying to grab whatever isn\u2019t nailed down<\/strong>&nbsp;if there is another scare.\u201d<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">And Deutsche Bank benefits most (or rescued from major liquidity needs) since it has by far the largest assets in US branches&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/2019-10-10_10-54-31.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Why would The Fed do this?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Simple, it cannot afford another Lehman-like move (or even the fear of one)&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfmF76E.jpg\" alt=\"\"\/><figcaption><em>Source: Bloomberg<\/em><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>After Unveiling &#8216;NotQE&#8217;, Fed Eases Liquidity Rules For Foreign Banks (Rescues Deutsche) Having cracked down on Deutsche Bank in the past, The Fed appears to be playing good-regulator\/bad-regulator&nbsp;as The FT reports&nbsp;thatDeutsche is expected to benefit most from an imminent change in The Fed&#8217;s liquidity rules. Specifically, US banking regulators have&nbsp;dropped an idea to subject local [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[61,1839,303,15367,27345,827,27346,4318],"class_list":["post-48931","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banking","tag-deutsche-bank","tag-fed","tag-foreign-banks","tag-notqe","tag-united-states","tag-us-banking-regulators","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48931"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48931\/revisions"}],"predecessor-version":[{"id":48932,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48931\/revisions\/48932"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}