Have to watch to see if banking lobby again approaches a now new GOP government with this regulatory modification request… last time in 2021 nutty Pocahontas led Dems wouldn’t agree with it so we’ve remained susceptible to the financial asset volatility Art degree monetarists can cause when they “inject some pumped in money!” in their characterizing deranged way they think Accounting abstractions are REAL…
I think UST should be in the SLR computation, although there might be some weighting of risk according to duration.
— Kim Driver (@KimDriver11) May 5, 2023
O/N reserve balances definitely should be excluded, as done by BoE and currently ECB.
If we can get this then there will be A LOT of reduction in realized volatility going forward while most participants will be still be paying the historic volatility prices…
🤔
1 comment:
This would be a good move. A better move would be to end the sale of bonds altogether.
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