Supplementary Leverage Ratio (SLR) Terms To Be Reconsidered

The proposed move to reconsider Supplementary Leverage Ratio (SLR) would largely benefit large banks, points out Rafferty Capital Markets, LLC.

Richard X. Bove of Rafferty notes that the proposal would facilitate banks that qualify under SLR without being forced to shrink their balance sheets.

Cash is not a risky asset

Referring to press reports, Bove notes that Mr. Thomas Hoeing, vice-chairman of the FDIC is beginning to reconsider the terms of the Supplementary Leverage Ratio. The analyst points out Mr. Hoeing is willing to consider the fact that cash is not a risky asset.

The analyst believes that in case cash is not considered a risky asset, it would be a big decision and...