US Regulators Mull Easing Banks' Capital Rule on Treasury Trades
Key Takeaways U.S. regulators may ease SLR rules to enhance liquidity in the 29T Treasury market. Proposal could lower capital requirements for big banks like JPM, MS, WFC & GS by up to 1.5 percentage points. Banks may gain more trading flexibility, improving Treasury liquidity and potential trading profits.In a move aimed at enhancing liquidity in the 29 trillion U.S. Treasury market, U.S. regulators are planning to ease a key capital requirement that has long constrained large banks’ trading activity. ...