Top lawmakers on the House Financial Services Committee are asking regulators to consider handing Wall Street a big win by loosening requirements for how much cash banks must set aside to offset potential losses.
“Given the adverse and unintended impact these requirements can have on financial institutions’ ability to participate in the Treasury market, we encourage the Federal Reserve Board to carefully consider the need for reforms that will support liquidity in the Treasury market, especially in times of stress with haste,” Reps. Andy Barr, R-Ky., Bill Foster, D-Ill., Ann Wagner, R-Mo., and Brad Sherman, D-Calif., wrote in a letter to Federal Reserve Chair Jerome Powell and acting Comptroller of the Currency Rodney Hood and shared with Semafor.
They also asked for more information on regulators’ plans, after Powell told lawmakers recently that revamping leverage ratios was something “we will return to and … get done.”