Indecent exposure: Fed limits threaten swaps liquidity

Unworkable due diligence rules may prompt G-Sibs to cut single counterparty exposure to less than 5%

It's a situation familiar to millions of parents: an unruly teenager with a penchant for getting into mischief is spending too much time with another surly adolescent with a talent for causing trouble. Aware that barring the two youths from associating altogether would likely backfire, many parents delicately try to nudge their child into spending more time with other friends in the hopes of limiting their exposure to the bad influence.

The US Federal Reserve finds itself attempting to walk a