"But they're trading cash for equity, and liquidity is at a premium right now".
It is based on his recent paper, "The Influence of Cross-Border Cooperation on Equity Market Liquidity," available here.
"State intervention to provide equity and liquidity, key in the midst of the financial crisis, has fully achieved its objectives," BNP said Tuesday.
The highly complex piece of legislation has been four years in gestation, aimed at setting new equity and liquidity standards for the banks to spare taxpayers the burden of having to shell out for reckless behaviour leading to collapse.
J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity.
Unlike equities, where liquidity generally comes immediately or within a couple of days for block trades, venture capital dollars may be locked up for almost a decade.
The S.E.C.'s rules also detail some disclosure requirements for private equity funds and "liquidity funds," which generally are short-term or money-market funds.
With respect to such regulation, the regulator can pull on one or more of three levers: capital (i.e., equity funding) requirements; liquidity requirements; and regulation of scope (such as restrictions on activities or asset holdings).
The perceived advantages were the possibility of diversification, establishment of value for estate and inheritance taxes, availability of equity, personal satisfaction, liquidity, and the ability to retain control of the business.
