Written by Jasir Jawaid
Senate Banking Committee Chairman Mike Crapo, R-Idaho, proposed an amendment to the Financial Stability Act of 2010 that would allow federal banking regulators to temporarily adjust their methods for calculating leverage capital requirements and other leverage requirements to address or avoid periods of severe economic stress.
The regulators would be permitted to impose the adjusted requirements under "unusual and exigent circumstances" for up to a year plus 180 days, according to Crapo's proposal.
The proposal would also amend the CARES Act by allowing the Treasury Department to take losses when making loans, loan guarantees and other investments, stating that the Treasury secretary "shall prioritize the provision of credit and liquidity to assist eligible businesses, States and municipalities."
This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.
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