Noisy
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The world is being quietly rearranged by people who write very long documents.

Federal Register · December 1, 2025
The title they went with Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies Noisy translates that to

Megabanks can now take on more low-risk debt without hitting capital limits

What happened
US financial regulators have loosened a key capital rule for the largest banks. This means banks can hold less cash against certain low-risk assets, making it cheaper for them to participate in activities like government bond markets.
Why it matters
The largest US banks, known as global systemically important banks, have to keep a certain amount of cash in reserve. This rule, called the supplementary leverage ratio, was meant to be a backstop, but it sometimes limited banks from holding low-risk assets like US Treasury bonds. Now, banks can hold more of these assets without triggering the rule, which could make it easier for them to act as market makers for government debt.
The signal
Watch whether these large banks increase their holdings of US Treasury bonds and other low-risk assets in the coming year, and if this translates into more liquidity in those markets.
If you insist
Read the original →