Treasury Secretary Scott Bessent is close to facilitating the main regulation requirement for US regulators, the Trump administration will facilitate the main regulation requirement to reduce liquidity, lending and long-term debt ratios.
When a number of new demands prepared to protect against future hazards, regulators, the banking system would be signed after a decline after a change in the 2008 financial crisis.
One of these requirements that Bessent wants to adjust, the additional debt ratio (SLR), was a rule for protection of a buffer in advance against the total loan and debt portfolio of large banks. This stack includes large holdings of US treasures.
The bankers prevent them from operating in the financial markets that may be a volatile of the markets, which are volatile to hold the markets for their trade in their treasures.
US Treasury Secretary Scott Bessent. (Reuters / Nathan Howard / File picture) ·Reuters / Reuters
About $ 30 trillion for US Treasurys, in a market in 2020, in 2020, in 2020, the last term of long-term treasury productivity, which resulted in the increase in the trajectory of the US debt, has recently achieved a new relevance after the new relevance.
Some market viewers say investors are shaken by the nation’s financial problems of the confidence of US debt.
JPMORGAN CHASE (Jpm) CEO Jamie Dimon said a crack in the bond market on Friday.
“I hope for six months or six years, and I hope that the Dimon Dimon Dimon” Dimon “Dimon” Dimon “Dimon” will change the trajectory of both debt trajectory and market manufacturers.
“Unfortunately, we may need it to arouse us.”
Banks are the main buyers of the US Treasurys and are playing the role of brokerage dealers in the treasury market and help other investors to receive and trade government bonds.
Bessent, equity reset, banks will allow additional treasures to balance sheets, so it allows a fresh increase flood. It also hopes that facilitate everything for banks will reduce the upper pressure for long-term treasury productivity – another main goal for new management.
“SLR can become a binding restriction instead of a backpack,” he said in his speech on March 6 before the Economic Club of New York. “The result is not even acted when the safest asset, US treasures and goal restrictions are applied.”
Bankers hope this change occurs.
Goldman Sachs Group (Gs) Last month last month David Suleyman called this “an important structural reform” that “will benefit the treasury”.
JPMorgan Dimon also accepts that the SLR will help market during stress, although he wanted to see reforms between many capital requirements.
“The reason for changing part of these things is so many banks – large market manufacturers will be able to meet more in the markets,” Dimon said last month.
JPMorgan Chase CEO Jamie Dimon visits “Mornings with Maria” with Maria Bartiromo in Fox Business Network in April. (Noam Galai / Getty Images) ·Noam galai vitty pictures
“If they are spreading, it will come in, the more active trader,” Dimon said. “If they do not, the Fed, every time a kerfuffle, a kerfuffle in the markets, I think the fed should come in and intermit.
Banks and their lobbyists want more than SLR only, the series of capital requirements want banks to earn less to give business loans.
“Bankers complain about what they say, HEY, we will not be able to borrow capital, we will not be able to lend to enterprises – the cost of capital is very high for this work,” Georgetown McDonough Associate James Angel said.
Bessent, federal careful recipe Jerome Powell can be allied in SLR reforms, which said they could improve the activities of the US Treasury Market.
“I am somewhat concerned about the level of liquidity in the treasury market,” Powell said in February when he appealed to the house deputies.
“The amount of treasury has grown faster than the increase in mediation,” he said. “And something open to make, an effective extra goal rate is to reduce its obligation.”
Michelle Bowman, who is nominated to be the best bank regulator, Fed’s best bank regulator, is another supporter of the SLR. His candidacy has passed since the Senate Banking Committee, but requires the approval of the Senate.
In January last year, the SLR could violate the ability to engage in the treasury market of banks, “he said in the first days of the market stress during the Coven-19 pandemia.
Federal Reserve Board Chief Officer Michel Bowman, President Trump’s candidate candidate will be the deputy deputy deputy deputy deputy deputy deputy deputy deputy. (Reuters / Kevin Mohatt / File picture) ·Reuters / Reuters
In April 2020, the Fed had to temporarily reduce the amount of banks to release the treasury market and the economy to support the treasury market and the economy.
SLR reform, Bowman added, in the category “Correcting broken” “.” This is an issue that will be careful to solve before it will break the market activity of future stress. “
Some critics are risking that banks are more likely to make more treasures open, and the risks to move prices suddenly.
In March 2023, this is what happened with the Silicon Valley Bank, because the ratifies put pressure on a large portfolio. The lender finally failed, the banking system creates a mini panic among depositors.
Angel is doubting that this can be a big problem.
“There is a lot of respect for the Governor Bowman and I think he probably is right about it,” he said. “I don’t think the SLR will be seeds for the next crisis.”
