The Fed board voted 5-2 on Wednesday to propose changes to what’s known as the enhanced supplementary leverage ratio, … The revisions would reduce holding companies’ capital requirement under the ratio to a range of 3.5% to 4.5% from the current 5%. Their banking subsidiaries would see that requirement lowered to the same range from 6%
This will release $200 ~ $225 B in capital for G-SIB. Here is the list of G-SIB
- JPMorgan Chase
- Citigroup
- Bank of America
- Bank of New York Mellon
- Goldman Sachs
- Morgan Stanley
- State Street
- Wells Fargo
The banks and financials are relentlessly moving up. Everytime I post I feel I don’t have sufficient allocations to this sector.