Fed proposes big banks keep more cash and assets on hand to survive another financial crisis

WASHINGTON – The Federal Reserve on Wednesday proposed that big banks keep enough cash, government bonds and other high-quality assets on hand to survive a severe downturn on par with the 2008 financial crisis.

The proposal would subject U.S. banks for the first time to so-called “liquidity” requirements. Liquidity is the ability to access cash quickly.

The public has 90 days to comment on the rules, which Fed officials said are stronger than new international standards for banks. The rules would be phased in starting in January 2015.

The requirements were mandated by Congress after the financial crisis. They are part of new regulations that are intended to prevent another collapse severe enough to require taxpayer-funded bailouts and threaten the broader financial system.