Repo Ruction: No, Jamie, It Wasn’t the SLR

That issue they’ve raised is something called the Supplemental Leverage Ratio, or SLR. It was created and applied to Global Systemically Important Bank organizations, or G-SIB. The FDIC, in particular, had pushed for the SLR because quite rightly the agency wasn’t very thrilled about the prospects for having to absorb potential deposit liabilities of huge banks sporting enormous leverage getting shut out of wholesale funding markets.

 

 

 

 

 

 

 

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