Victoria Guida on Developments at the Federal Reserve and in Financial Regulation
Macro Musings with David Beckworth
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The SLR Tweak Is a Good Thing, Right?
No one expected the Fed's balance sheet to be that big, which in turn means the banks have to hold a lot of reserves. The Bank of England tweaked their SLR and they only took out reserves. So there are ways to do that tweak or the adjustment where you wouldn't necessarily lower overall capital. And I think it was partially because the way that it would affect capital at the insured depository institution was sort of unworkable from the FDIC's perspective.
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