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Fed's Proposed Deregulation Sparks Concerns Over Financial Stability

6/26/2025

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Summary

Story summary

The Federal Reserve plans to lower capital requirements for major banks under the enhanced supplementary leverage ratio (eSLR) to 3.5%-4.5%.
Critics, including Senator Elizabeth Warren, argue this deregulation may threaten financial stability during uncertain economic times.
The proposal seeks to enhance liquidity in the Treasury market but has met resistance from some Fed officials over potential risks.

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Story summary

The Federal Reserve plans to lower capital requirements for major banks under the enhanced supplementary leverage ratio (eSLR) to 3.5%-4.5%.
Critics, including Senator Elizabeth Warren, argue this deregulation may threaten financial stability during uncertain economic times.
The proposal seeks to enhance liquidity in the Treasury market but has met resistance from some Fed officials over potential risks.