Fed plans to ease bank leverage rules to facilitate Treasury market trading, sparking debate.

From Yahoo Finance: 2025-06-25 06:03:00

The Federal Reserve is considering easing leverage rules for banks to help facilitate Treasury market trading, revamping the supplementary leverage ratio (SLR) that requires banks to hold capital against assets regardless of risk level. Fed Chairman Jerome Powell announced plans to advance a proposal that would tweak the formula calculating the “enhanced” SLR, potentially tying leverage requirements to the overall risk posed by banks. While this move is part of a broader deregulatory agenda, critics like Senator Elizabeth Warren argue that relaxing rules could inject unnecessary risk into the financial system.



Read more at Yahoo Finance: Fed kicks off effort to ease bank leverage rules