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Morgan Stanley Predicts Fed's Easing of Leverage Ratio Requirements to Release $185 Billion in Capital
Summary: According to reports, Morgan Stanley estimated on Thursday that the Federal Reserve's plan to relax leverage rules could release $185 billion in capital and unlock nearly $6 trillion in balance sheet capacity. The Fed announced a proposal on Wednesday to revise capital requirements for large global banks on relatively low-risk assets to boost participation in ...
According to reports, Morgan Stanley estimated on Thursday that the Federal Reserve's plan to relax leverage rules could release $185 billion in capital and unlock nearly $6 trillion in balance sheet capacity. The Fed announced a proposal on Wednesday to revise capital requirements for large global banks on relatively low-risk assets to boost participation in the US Treasury market. The plan was approved by a 5-2 vote by the Fed, marking the first round of deregulatory measures under the leadership of the Fed's new regulatory vice chair Bowman. The proposal will reform the so-called 'enhanced supplementary leverage ratio,' linking the amount of capital banks must set aside directly to their role in the global financial system.
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Link: Morgan Stanley Predicts Fed's Easing of Leverage Ratio Requirements to Release $185 Billion in Capital [Copy]
