Treasury’s regulation unwind already having an effect on markets

The Treasury’s proposal to unleash financial sector animal spirits constrained over the last seven years by the weight of regulations is already sweeping through markets. Just look at the ease in exchanging foreign-currency denominated loans for those in dollars, interest-rate swap spreads, and gauges of the cost to fund Treasuries through repurchase agreements. Traders see the changes as allowing banks to move away from building huge coffers of ultra-safe debt and extend credit elsewhere in the...

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