The Treasury Select Committee has written to Sir Mervyn King and Hector Sants to express concerns over the effects the current squeeze on bank liquidity is having on banks’ ability to help with the economic recovery. The Committee points out that there are no plans to implement Basel III early, but that tighter liquidity regulation has already begun. The letters also ask who is in charge of liquidity regulation. (Source: Treasury Committee Asks For Liquidity Reassurance)