Wall Street Banks Push for More Basel Relief Over Treasury Liquidity Fears

Regulation
โดย Zacks Investment Research·Read original
Summary · why it matters

Wall Street banks are urging U.S. regulators to further soften the market-risk portion of the Basel Endgame framework, warning that the current proposal could unintentionally weaken liquidity in the Treasury market. The International Swaps and Derivatives Association, the Securities Industry and Financial Markets Association, and the Institute of International Finance said in a joint letter that the rules could increase capital requirements tied to certain trading activities by 30% to 89%, potentially discouraging banks from providing liquidity. They also cautioned that the upcoming mandatory central clearing for Treasuries and repos could be undermined by higher capital charges on counterparty credit risks. This push follows the Federal Reserve's March revision that is expected to reduce capital requirements for the largest U.S. lenders by 4.8%, a move that Goldman Sachs CEO David Solomon called encouraging. Trading-oriented banks like JPMorgan, Goldman Sachs, and Bank of America have the most at stake, as further easing could improve trading economics and balance-sheet flexibility.

Impact on stocks 3

Financials▲ · 2 stocks
Goldman Sachs Group Inc
GS
▲ PositiveRegulationrelevance

Goldman Sachs CEO called the Fed's March revision encouraging; further easing of Basel rules would improve trading economics and balance-sheet flexibility for this trading-oriented bank.

Bank of America Corp
BAC
▲ PositiveRegulationrelevance

Further softening of Basel Endgame market-risk rules would reduce capital requirements for trading activities, benefiting Bank of America's trading economics and balance-sheet flexibility.

Digital Finance & Tokenization▲ · 1 stocks
JPMorgan Chase & Co
JPM
▲ PositiveRegulationrelevance

JPMorgan, as a trading-oriented bank, stands to benefit from further Basel relief that could improve trading economics and balance-sheet flexibility.

© 2026 MarketDXNews