The chairman of the US Securities and Exchange Commission says the agency plans to require the top investment banks to publicly disclose their current liquidity and capital positions, Reuters reports.
“The idea is to provide current information to the markets,” SEC Chairman Christopher Cox says. “One of the lessons learned from the Bear Stearns experience is that in a crisis of confidence there is a great need for information about capital and liquidity.”
Cox also says Congress needs to pass legislation to give the SEC or “another regulator” the explicit statutory mandate to supervise investment banks. The SEC currently is the primary regulator of the five biggest U.S. investment banks through a voluntary program.