Fed unveils proposal to ease bank leverage requirements

By Pete Schroeder

WASHINGTON, June 25 (Reuters) - The Federal Reserve unveiled a proposal on Wednesday that would overhaul how much capital large global banks must hold against relatively low-risk assets, as part of a bid to boost participation in U.S. Treasury markets.

The proposal unveiled by the Fed would reform the so-called "enhanced supplementary leverage ratio" so that the amount of capital banks must set aside is directly tied to how large a role each firm plays in the global financial system. The Fed board will consider and vote on the proposal later Wednesday.