Thurs, June 26, 2025:
The Fed unveiled plans to roll back an important capital rule that big banks say limits their ability to hold more Treasuries and act as intermediaries in the $29 trillion market. – Bloomberg
It’s a window into the new era for financial regulators who are progressively losing their freedom to set policy without interference from the executive branch, particularly given signals out of the Supreme Court that it plans to further reduce that latitude. – Politico
Wed, June 25, 2025:
Wall Street is poised to receive a big gift courtesy of the Federal Reserve. The central bank unveiled plans to roll back an important capital rule that big banks have complained limits their ability to hold more Treasuries and act as intermediaries in the $29 trillion market. The Fed board voted 5-2 on Wednesday to propose changes to what’s known as the enhanced supplementary leverage ratio, which applies to the largest US banks—like Bank of America, JPMorgan and Goldman Sachs. The revisions would reduce holding companies’ capital requirement under the ratio to a range of 3.5% to 4.5% from the current 5%. Their banking subsidiaries would see that requirement lowered to the same range from 6%. – Bloomberg