Reported 2 days ago
U.S. Treasury Secretary Scott Bessent is pushing for changes to a key regulatory requirement that affects banks' ownership of Treasurys, aiming to increase liquidity in the $30 trillion Treasury market, boost lending, and mitigate rising long-term borrowing rates. Bessent's proposal seeks to adjust the supplemental leverage ratio (SLR), which currently requires banks to hold capital against their Treasury investments, thereby hindering their ability to act as market intermediaries. With concerns over U.S. debt and market stability growing, Bessent, along with financial leaders like JPMorgan's Jamie Dimon, believes that easing these rules will strengthen the financial system.
Source: YAHOO