
Federal Reserve Governor Michelle Bowman has proposed potential amendments to the leverage ratio and the Global Systemically Important Bank (G-SIB) surcharge regulations. During recent discussions, Bowman emphasized the need for proactive measures to ensure that dealers possess adequate capacity to manage Treasury markets effectively. She highlighted that modifying these regulations could enable banks to hold more Treasuries, thereby enhancing liquidity in the market. Bowman's suggestions come amid ongoing concerns regarding the mixed messaging from regulators about the use of the Fed's discount window, which some argue undermines financial stability.
Fed’s Bowman Says Regulators Could Boost Treasury Liquidity https://t.co/421ZqDdQ8T
Bowman suggesting modifications on leverage ratios and GSIB surcharges so banks can hold more Treasuries. She is the front runner for Vice Chair of Supervision. https://t.co/Bcwxio8fp4
Fed's Bowman: We should take proactive steps to ensure dealers have adequate capacity to intermediate Treasury markets... "this could include amending the leverage ratio and G-SIB surcharge regulations for the largest U.S. banks." https://t.co/pj4ikyxsvS