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April 27th, 2016 
Awake Goy
Susanne Posel ,Chief Editor Occupy Corporatism | Media Spokesperson, HEALTH MAX Brands
The Federal Deposit Insurance Corporation (FDIC) has proposed the Net Stable Funding Ratio (NSFR), a way to strengthen bank liquidity during financial stress in order to “ensure liquidity over a one-year horizon, compared with the liquidity coverage ratio of 2014 requiring banks to hold high-quality assets that could be readily converted into cash within 30 days.”
The FDIC maintains that this would “discourage reliance on more volatile short-term funding” because “during the financial crisis, a number of large banking organizations failed, or experienced serious difficulties, in part because of severe liquidity problems” and the NSFR “would reduce the vulnerability of large banking organizations to the kind of collapse in liquidity that occurred to the crisis.”
The American Banker Association (ABA) explained: “Banks have always sought to manage their liquid assets as efficiently as possible in order to maximize asset performance — a phenomenon known as maturity transformation. But leading up to and during the crisis, banks and other financial institutions were not only highly leveraged but highly reliant on short-term wholesale funding — that is, very short-term cash loans — to meet their liquidity obligations.”
The issue of liquidity and the NSFR is part of the Federal Reserve Bank (FRB) and the US Office of the Comptroller of Currency (OCC) 2013 announcement that mega-banks such as Wells Fargo, Bank of America (BoA) and JPMorgan & Chase Co. had agreed to pay $8.5 billion because of a settlement promoted by federal complaints that these institutions wrongfully foreclosed on customers.
According to the agreement 3.8 million Americans who were foreclosed on between 2009 and 2010 would receive an average of $2,237.00, while another $5.2 billion would be made available to compensate for loan modifications.
Ingeniously, the settlement devised by the OCC and the FRB prevented Congress from reviewing the Independent Foreclosure Review process which came to the amount agreed upon in the settlement. The FRB and OCC also decided who would benefit from the settlement and how much they would be compensated.
And the reason for this “sweeping under the rug” of banks involved in mortgage backed securities fraud was the Bank of International Settlements (BIS) and the Basel Committee on Banking Supervisors (BCBS) has applied the underlying pressure on US banks to liquidate to appease global markets.
The American taxpayer is picking up the tab for this turn of events. BIS is giving these banks until 2019 to comply with their new rules. Capital to prop up the banks will be needed while they liquidate assets such as bonds, mortgages, loans and stock shares.
The BIS created an environment to redirect capital from the international banking constraints mandated before these new rules. Essentially putting more control into the hands of “shadow banks” where supervision is unheard of.
Michel Barnier, commissioner of BIS, stated that the Basel Committee “revised liquidity coverage ratio and the gradual approach for its phasing-in by clearly defined dates. This is significant progress which addresses issues already raised by the European Commission. We now need to make full use of the observation period, and learn from the reports that the European Banking Authority will prepare on the results of the observation period, before formally implementing in 2015 the liquidity coverage ratio under EU law in line with the Basel standards.”
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