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2021-03-20
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Bank stocks fall after Federal Reserve Board lets SLR temporary rule expire
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Morgan Stanley strategistsexpected similar actionsin response to the expiration.</p>\n<p>He estimated that Bank of America (BAC-2.3%), Citigroup (C-1.9%), and JPMorgan Chase (JPM-2.4%) would end the year below SLR minimum requirements.</p>\n<p>Still, that doesn't mean there won't be any effect. Ahead of the Fed's announcement, holdings at primary dealers dealers dropped by a record $64.7B to $185.8B in the week through March 3, bringing them to the lowest level since 2018, Bloomberg reported on Wednesday.</p>\n<p>Other affected banks: Wells Fargo (WFC-2.85%), Goldman Sachs (GS-1.28%), Morgan Stanley (MS-1.83%), PNC Financial (PNC-2.2%), Truist Financial (TFC-2.8%), Bank of New York Mellon (BK-2.0%), Northern Trust (NTRS-0.4%), State Street (STT-1.9%), Capital One Financial (COF-2.6%), U.S. Bancorp (USB-1.6%).</p>\n<p><img src=\"https://static.tigerbbs.com/ced47631451f6ca9d4899fd58fe355fd\" tg-width=\"292\" tg-height=\"243\"></p>\n<p></p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Bank stocks fall after Federal Reserve Board lets SLR temporary rule expire</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBank stocks fall after Federal Reserve Board lets SLR temporary rule expire\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-03-19 21:57 GMT+8 <a href=https://seekingalpha.com/news/3674412-bank-stocks-fall-after-federal-reserve-board-lets-slr-temporary-rule-expire><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Federal Reserve Board allows the temporary change to its supplementary leverage ratio rule, or SLR, for the largest banksto expireas scheduled at the end of the month.\nThe Financial Select Sector ...</p>\n\n<a href=\"https://seekingalpha.com/news/3674412-bank-stocks-fall-after-federal-reserve-board-lets-slr-temporary-rule-expire\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GS":"高盛","WFC":"富国银行","JPM":"摩根大通","MS":"摩根士丹利","C":"花旗"},"source_url":"https://seekingalpha.com/news/3674412-bank-stocks-fall-after-federal-reserve-board-lets-slr-temporary-rule-expire","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1132724682","content_text":"The Federal Reserve Board allows the temporary change to its supplementary leverage ratio rule, or SLR, for the largest banksto expireas scheduled at the end of the month.\nThe Financial Select Sector SPDR ETF(NYSEARCA:XLF) falls 1.3% in early trading.\nThe temporary rule, that allowed banks to exempt Treasurys and deposits at the Fed from the SLR, was implemented as an emergency measure to give the financial institutions flexibility to provide credit to households and businesses during the COVID-19 pandemic.\nWhile some analysts expect forced selling of positions, tighter swap spreads, and higher repurchase rates, Credit Suisse analyst Zoltan Pozsardoesn't expecta dramatic effect from the expiration because it didn't have a major impact to start with.\nThe change \"won’t lead to forced sales, neither will it cause a constraint on the functioning of the Treasury repo market,\" he wrote in a note to clients on Tuesday.\nOverall, he doesn't see any restraints driving forces selling by holding companies, he wrote.\nEarlier this month, Goldman analyst Richard Ramsden said the expiration would require the biggest banksto issue preferred equity, turn away deposits, or send capital downstream to bank subsidiaries, reducing the amount of capital that could go to shareholders. Morgan Stanley strategistsexpected similar actionsin response to the expiration.\nHe estimated that Bank of America (BAC-2.3%), Citigroup (C-1.9%), and JPMorgan Chase (JPM-2.4%) would end the year below SLR minimum requirements.\nStill, that doesn't mean there won't be any effect. Ahead of the Fed's announcement, holdings at primary dealers dealers dropped by a record $64.7B to $185.8B in the week through March 3, bringing them to the lowest level since 2018, Bloomberg reported on Wednesday.\nOther affected banks: Wells Fargo (WFC-2.85%), Goldman Sachs (GS-1.28%), Morgan Stanley (MS-1.83%), PNC Financial (PNC-2.2%), Truist Financial (TFC-2.8%), Bank of New York Mellon (BK-2.0%), Northern Trust (NTRS-0.4%), State Street (STT-1.9%), Capital One Financial (COF-2.6%), U.S. Bancorp (USB-1.6%).","news_type":1},"isVote":1,"tweetType":1,"viewCount":396,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":2,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/350506766"}
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