Fed says banks should consider conducting small value discount wind transactions

<p>The Fed is out with a report with some suggestions for banks in raising liquidity.</p><ul><li>Banks should ensure they are familiar with the pledging process for different collateral types and be aware that pre-pledging collateral can be useful if liquidity needs to arise quickly </li><li>Banks should consider small value discount window transactions at regular intervals</li><li>Events of H1 underscore importance of liquidity risk management and contingency planning</li></ul><p>This is good advice that banks will certainly ignore.</p>

This article was written by Adam Button at www.forexlive.com.