US Plans to Ease Capital Rule Limiting Banks' Treasury Trades

[BumRushDaShow]

Source: Bloomberg

June 17, 2025 at 8:06 PM EDT


The top US bank regulators plan to reduce a key capital buffer by up to 1.5 percentage points for the biggest lenders after concerns that it constrained their trading in the $29 trillion Treasuries market. The Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency are focusing on what’s known as the enhanced supplementary leverage ratio, according to people briefed on the discussions.

This rule applies to the largest US banks, including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley. The proposal would lower a bank holding company’s capital requirement under the eSLR to a range of 3.5% to 4.5%, down from the current 5%, according to the people, who didn’t want to be identified discussing nonpublic information. The firms’ banking subsidiaries would also likely see their requirement reduced to the same range, down from the current 6%, the people said.

The revisions resemble those from 2018, when President Donald Trump’s regulators sought to “tailor” the eSLR calculation that applied to US global systemically important banks, according to the people familiar with the matter. The people said the proposal’s language could still change.

The proposal will look to change the overall ratio rather than exclude specific assets like Treasuries, as some observers had predicted. Still, it’s expected to ask for public comment on whether the agencies should carve out Treasuries from the calculation, the people said.

Read more: https://www.bloomberg.com/news/articles/2025-06-18/us-plans-to-ease-capital-rule-limiting-banks-treasury-trades?srnd=homepage-americas

[JT45242]

1. Deregulation of banks has always prevented recession, depression, and crashes...right

The sarcasm is obvious. But these foxes bought themselves a government to deregulation so that they can maximize privatized profits and get massive bailouts when they collapse the economy AGAIN.

Gen Xer and these asshats collapsed the economy 4 times already in my lifetime (s&l, junk bonds, housing bubble, etc).

The only thing that keeps greedy short sighted banks from causing economic collapse is regulation

[Ritabert]

2. Weren't all of those guys bailed out by us taxpayers in 2008?

[BumRushDaShow]

3. That was then

this is now...

[Ritabert]

4. Selective amnesia by all of them.

[snot]

5. I beg to differ. Wall St. & Congress know well enough what they're doing,

and it has nothing to do with benefitting the rest of us.

[Ritabert]

6. True. The selective amnesia is for the camera.