– Peter Thal Larsen is a Reuters columnist. The views expressed are his own –
By Peter Thal Larsen
LONDON, Oct 6 (Reuters) – The UK’s Financial Services Authority has come up with a sensible set of rules to shore up banks’ liquidity buffers. But the real test will be managing the transition. Banks know they will have to buy tens of billions of pounds of government bonds, but the regulator is being deliberately vague about when. There are substantial risks if the FSA gets its timing wrong.