US Treasury Secretary: Banking SLR rules are expected to be cancelled this summer

Regulators could eliminate a rule that has long restricted banks' trading of Treasuries this summer, Treasury Secretary Vincent Bescent said. Mr. Bescent said he was very close to acting on the supplemental leverage ratio (SLR) rule. He noted that the three big bank regulators - the Federal Reserve, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) - were working on the issue and "I think we could see results in the summer". Removing the existing SLR rule, which requires banks to maintain a capital base when trading Treasuries, could push Treasury yields down by dozens of basis points, Mr. Bescent said.