Fed Effectively Tells Banks To Increase Leverage With Rule Upping Exposure Capacity By $1.6 Trillion
In a move that's sure to transform every pedestrian market observer into some combination of a rates strategist and a regulatory crusader, the Fed on Wednesday afternoon decided to "temporarily" exclude Treasurys and deposits at Federal Reserve banks from the supplementary leverage ratio.
The idea, basically, is to ensure that the behavior of market participants in light of recent turmoil and the effects of the policy actions taken to ameliorate that same turmoil don't end up curtailing banks'
Troubling that after all the interventions last week there are still liquidity issues in the Treasury market.
Considering that over 2 weeks ago, this problem was expanding beyond 20 trillion, they still don’t really understand the total global shitstorm
Some perspectives dictate that comprehensive global dollar dynamics rule this situation. Is the FED oblivious to that?