The divided federal reserve suggests a base to reduce capital requirements for the large Wall Street

the Federal Reserve On Wednesday, he suggested facilitating the main capital base that the banks say have limited their ability to work, which leads to at least opposition from officials who say this step can undermine important guarantees.

Known as improved supplementary financial leverage, this measure organizes the amount and quality of capital banks that must be on their public budgets. The base has emerged from the post -financial effort to ensure the stability of the country’s largest banks.

However, in recent years with banking reserves built and fears about the liquidity of the Treasury market, the Wall Street executives and federal reserve officials have prompted the requirements to restore the requirements. The regulations that targeted all the capital.

“This bright increase in the amount of safe and relatively low assets on banking budgets over the past decade or so has led to the amount of leverage becomes more binding.” Jerome Powell He said in a statement. “Based on this experience, it is wise for us to reconsider our original approach.”

The Federal Reserve set the proposal open to a 60 -day suspension window.

In the draft shape, this measure will require reduce 1.4 % large capitalist banks, or about 13 billion dollars, for holding companies. The subsidiary companies will witness a greater decline, of $ 210 billion, which will continue to be kept by the bank. The criterion applies the same rules to the so -called systemic task in the world as well as its subsidiaries.

The base will reduce capital requirements to 3.5 % to 4.5 % of the current 5 %, with subsidiaries in the same range of the previous level of 6 %.

The current Vice President for Supervision Michel Bowman and Governor Christopher Waller issued data that support changes.

“The proposal will help build flexibility in the US Treasury markets, which reduces the possibility of the market defect and the need for the federal reserve to interfere in a future stress event,” Bowman stated. “We must be proactive in addressing the unintended consequences of banking organization, including ESLR’s association, while ensuring the framework continues to enhance safety, safety and financial stability.”

On the whole, the plan seeks to reduce banks to take over the inventory of low risks such as the cabinet, which is now dealt with mainly like high -yielding bonds for capital purposes. The Federal Reserve Organizers mainly search for capital requirements to serve as a safety network instead of linking the activity.

However, conservative Adriana Kogler and Michael Bar, former vice president of supervision, said they would oppose this step.

“Even if some mediation of the additional cabinet market occurs at normal times, it is unlikely that this proposal will help in times of tension,” Bar said in a separate statement. “In short, companies are likely to use the suggestion to distribute capital to shareholders and participate in the highest return activities available to them, rather than increasing the mediation of the treasury.”

The leverage percentage was criticized for the main punishment of banks for the closet. The official documents issued on Wednesday say that the new regulations are in line with the so -called Basel standards, which have set the standards of banks worldwide.