The U.S. Federal Reserve has proposed changes to ease the enhanced supplementary leverage ratio (ESLR) for large banks, marking a step toward rolling back capital requirements imposed after the 2008-09 financial crisis. The proposal would reduce aggregate Tier 1 capital requirements for global systemically important banks (GSIBs) by 1.4%, equivalent to $13 billion, and cut subsidiary capital requirements by 27%, or $213 billion. This adjustment aims to alleviate constraints that banks have said limit their ability to hold more U.S. Treasuries and act as intermediaries in the $29 trillion Treasury market. The ESLR buffer would be tied to the GSIB surcharge under the new plan. The proposal has drawn mixed reactions within the Federal Reserve, with Chairman Jerome Powell calling the review "prudent," while officials Michael Barr and Lisa Cook have expressed opposition, citing concerns over weakening financial safeguards. The Fed has opened a 60-day public comment period for the proposed rule changes. Major banks expected to be impacted include Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, U.S. Bancorp, and Wells Fargo. Morgan Stanley has indicated that the plan is expected to benefit large U.S. banks by freeing up capital and supporting Treasury market trading.