Wall street urges US regulators to further ease Basel capital rules, FT reports

Wall Street groups are warning that the proposed Basel Endgame capital rules could reduce liquidity in US Treasury markets, prompting calls for regulators to rework the framework. The main concern is that higher capital requirements may constrain dealer balance-sheet capacity and widen trading frictions in the Treasury market. The story is negative for bank intermediation and potentially relevant for rates market liquidity, though no specific dollar or bps impact is given.

Analysis

Wall Street groups are warning that the proposed Basel Endgame capital rules could reduce liquidity in US Treasury markets, prompting calls for regulators to rework the framework. The main concern is that higher capital requirements may constrain dealer balance-sheet capacity and widen trading frictions in the Treasury market. The story is negative for bank intermediation and potentially relevant for rates market liquidity, though no specific dollar or bps impact is given.