SBC Democrats Pen Letter to Preserve eSLR

Senate Banking Committee (SBC) Democrats sent a letter to financial regulators asking them to conduct further cost-benefit analyses before finalizing any changes to the enhance supplementary leverage ratio (eSLR). Senate Democrats stated that eliminating the eSLR will not facilitate large banks trading more treasuries as they already have unused capacity to do so. Lawmakers also noted that lowering the eSLR will allow banks to assume more leverage and risk. A lower eSLR may also direct capital away from lending activities and towards trading.  

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