No carve-outs in Fed’s revised leverage ratio proposal

Holdco leverage ratio will fall, but initial margin and custody funds still in scope

half-carved-guitars_Getty-web.jpg
Out of tune: the Fed is unlikely to follow the Senate’s plan to exempt custody assets

A highly anticipated proposal to revise leverage limits for the largest US banks, which could be unveiled as early as next week, is not expected to offer the targeted capital relief sought by custodians and clearing banks.

Regulators at the US Federal Reserve and Office of the Comptroller of the Currency (OCC) are understood to have agreed the outlines of a proposal that would see the enhanced supplementary leverage ratio (eSLR) – which is set at 5% for the eight largest US bank holding

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: