The FDIC Board voted unanimously 3-0 to propose changes to the enhanced supplementary leverage ratio (eSLR) standards. The proposal, along with anticipated similar actions by the other banking agencies, would significantly weaken capital requirements for Wall Street megabanks. Lowering leverage-based capital requirements will fail to alleviate Treasury market pressures and will increase risks to financial stability. Such undercapitalization places the economy at substantially increased risk for another financial collapse.

Notably, the public board meeting, originally scheduled for June 26, 2025 was cancelled and this decision was made privately by notational vote.

Read Better Markets’ statement here.