On April 16th, Michael Faulkender, Deputy Secretary of the Treasury of the United States, stated that officials are discussing a possible rule change targeting banks. With the decline in US Treasury bonds last week, attention to the regulatory requirement of “Supplementary Leverage Ratio” (SLR) has skyrocketed. The largest decline in US Treasury bonds in over 20 years has raised concerns about a market crash similar to the one in March 2020. Any rule changes still require approval from the Federal Reserve and other regulatory agencies, although the chairman of the regulatory committee responsible for US financial stability is the Secretary of the Treasury. Faulkender said at an event, ‘We are investigating this matter and have already started discussing it.’.
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