WASHINGTON — Very few large banks would opt to comply with a higher leverage ratio in return for substantial regulatory relief, the according to the Congressional Budget Office.
In the report on House Financial Services Committee Chairman Jeb Hensarling’s Financial Choice Act, the CBO estimate that “most of the financial institutions that chose to maintain a 10% leverage ratio would be those with assets below $10 billion,” primarily because those institutions already hold leverage ratios in excess of 10%.
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