US policy groups tussle over leverage ratio relief
Large US banks want the Federal Reserve to extend a measure allowing them to exclude Treasury bond exposures from their leverage ratio calculations. But other industry figures are pushing back. Senators have warned against the risks of letting temporary Covid support become more permanent.
US banks received a huge influx of liquidity when the Fed rapidly expanded its balance sheet during the early phase of the coronavirus crisis last year.
They parked most of the extra cash with the central bank or invested it in low risk securities like US Treasuries.Supervisors ...