Why Fed’s Covid Break for Banks Now Has It in a Bind

After markets gyrated in March 2020, the U.S. Federal Reserve pumped trillions of dollars into a financial system rocked by the coronavirus pandemic. It also gave banks a one-year break from a rule it feared could make them pull hundreds of billions out of the economy at an inopportune time. As the March 31 end of the waiver to something called the supplementary leverage ratio (SLR) approaches, many banks are arguing that the waiver should be extended, lest they be forced to retrench while the e

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