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S.2155 did, at the time, weaken the leverage ratio, but only for so-referred to as custodial banks, which don't primarily make loans but instead safeguard belongings for rich people and corporations like mutual funds. The precise mechanism to try this was to fiddle with what’s known because the supplementary leverage ratio, or SLR, a key capital requirement for the nation’s largest banks. But this would defeat the entire purpose of a leverage ratio, which is to put a cap on complete leverage, no matter what the belongings on the other aspect of the steadiness sheet may be. “And it’s smaller than some banks deregulated by this invoice.” Warren added that the stadium banks deregulated in S.2155 received a total of $47 billion in bailout funds straight, and trillions extra in loan guarantees and emergency Federal Reserve lending. Title II of the bill does target banks with below $10 billion in total belongings.
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