Liquidity Fears May Re Overblown.

The article reports on the fear among market participants over the upcoming expiration of nearly 1 billion dollars of letters of credit and other bank liquidity facilities on New York in 2011. It notes that issues are bothered about their ability to renew these facilities, with the banking sector facing more stringent regulations. It also states the fact the banks have the capacity extend municipal credit to most of the local governments needing it.