Vice Chairman of the Federal Reserve Board Donald L. Kohn on the Necessity of Capital and Liquidity Under Basel II

Kohn declares that institutions are well-capitalized, but it may be necessary it look into raising more capital in order to safeguard against worst-case scenarios. He also states that liquidity was present, but it was quite strained and left banks stressed and unwilling to lend for as much as three months. (1:22)
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