Investors had focused intently on the fate of these regulatory concessions in recent weeks, especially as volatility in the $21t market for US government bonds picked up and Treasury yields shot higher. Without more lenient rules for large US banks, Wall Street strategists cautioned that the choppy trading conditions that have at times this year engulfed the world’s largest government bond market could be amplified, even as the deficit swells.
“The board will shortly seek comment on measures to adjust the SLR,” the Fed said on Friday. “The board will take appropriate actions to assure that any changes to the SLR do not erode the overall strength of bank capital requirements”, it added.
https://www.ft.com/content/279c2755-acab-4d9a-9092-d55fe5f518fa