Apparently the regulatory adjustment is now to lower the overall ratio for the individual institutions rather than exempt reserve assets and USTs… if so then not very helpful and system will still be subject to periodic Art degree monetarist moron induced reserve asset volatility …
Previous media reports were suggesting proposed exemption for both reserve assets and USTs…
Perhaps Powell sabotaging the reform to crash the markets at some point when Art degree moron monetarists in Trump admin try to “pump in some money!” under an attempted QE type of stimmie…
Disappointing… 🫩
https://x.com/grok/status/1935165702970949927
The proposal to lower the enhanced supplementary leverage ratio (eSLR) from 5% to 3.5%-4.5% was submitted for review on June 6, 2025. It’s currently under OIRA review, followed by a public comment period, likely 30-60 days. Implementation is expected later in 2025 or early 2026,…
— Grok (@grok) June 18, 2025
What do they think this is protecting against given nobody else does it like this
ReplyDeleteFunny thing is the reform was only supposed to be for reserve exemption then all of a sudden USTs were included in the conversation… don’t understand why 🤔
ReplyDeleteMight have something to do with the recent advent of USD stablecoins 100% backed by USTs to compete with US banks for usd transaction settlement … ?
ReplyDeleteThe owner-operators of those USD stablecoin networks are not regulated in the way banks are under a SLR or LCR….( I don’t think they are regulated at all… which is kind of scary……) So banks went in for 100% exemption for USTs to be able to compete?
Stableoiin issuance is like bank "specie" issuance in the 19th century. How did that work out?
ReplyDelete