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Fed to End Covid-19 Capital Break It Gave Wall Street Banks

  • Relief from supplementary leverage ratio expires March 31
  • Central bank says it’s weighing permanent changes to SLR
Updated on

The Federal Reserve will let a significant capital break for big banks expire at month’s end, denying frenzied requests from Wall Street.

In response to the pandemic, the Fed had let lenders load up on Treasuries and deposits without setting aside capital to protect against losses. That relief will lapse March 31 as planned, the Fed said in a Friday statement.