According to BlockBeats, Morgan Stanley estimates that the Federal Reserve's plan to ease leverage rules could release $185 billion in capital and unlock nearly $6 trillion in balance sheet capacity.
The Federal Reserve announced a proposal to revise capital requirements for large global banks regarding low-risk assets to boost participation in the U.S. Treasury market. The plan was approved by a vote of 5 to 2.
The proposal will reform the enhanced supplementary leverage ratio, directly linking the amount of capital set aside by banks to their role in the global financial system.