The Federal Reserve will hold a meeting to discuss relaxing bank leverage requirements

Golden Finance reports that the Federal Reserve will hold a meeting to discuss plans to relax leverage requirements for large banks, which is expected to initiate a wide-ranging plan to reconsider banking rules. The Federal Reserve announced that it will hold a board meeting on June 25th to discuss modifying the so-called "supplemental leverage ratio," which requires banks to set aside capital for assets regardless of risk. This will be the first meeting held after Federal Reserve Governor Bauman was confirmed as the Fed's top regulatory official. Relaxing leverage requirements may be the first of several relaxation rule plans by the Federal Reserve, and Bauman has developed an ambitious plan aimed at reforming the way the Fed regulates and supervises some of the largest and most complex banks in the United States. The Federal Reserve has not provided any details on the proposal under consideration, but banks have been requesting modifications to the supplementary leverage ratio for many years, which may exempt traditionally safe assets or modify the formula used to calculate leverage ratios. The bank said that adding leverage ratio may actually hinder its ability to enter the intermediate treasury bond bond market in times of stress.