Having a leverage ratio as a backstop to risk-based capital requirements is sound, but the way it is currently calibrated is having a dramatic effect on financial markets.
The FDIC is watching banks that use wholesale funds to support CRE lending. The warning comes as brokered deposit levels at community banks are at their highest level in nearly six years.
BlackRock, the world’s largest asset manager, said it plans to move $1 trillion in custodial and fund services for client assets to JPMorgan Chase from State Street.
