by Mike ‘Mish’ Shedlock
With reserve requirements down to zero, the Fed has now reduced capital requirements on banks.
Another Bazooka to Nowhere
In yet another act of Fed desperation, Big Banks Get Blessing to Extend Leverage.
To ease strains in the Treasury market resulting from the coronavirus and increase banking organizations’ ability to provide credit to households and businesses, the Federal Reserve Board on Wednesday announced a temporary change to its supplementary leverage ratio rule. The change would exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the calculation of the rule for holding companies, and will be in effect until March 31, 2021.