Why Wall Street Wants Bond Carve-Out in Capital Rules: QuickTake

US President Donald Trump kicked off his second term promisingto slash regulation. There are growing signs that this push to streamline the federal rulebook could fulfill one of Wall Street’s longstanding wishes: an easing of capital requirements for banks, specifically the supplementary leverage ratio.

The SLR was introduced in the wake of the 2008 global financial crisis to ensure banks hold a certain amount of capital relative to their assets. But many in the financial sector argue that this rule has limited banks’ purchases of safer instruments like US Treasuries, as well as their ability to act as brokers ...