Bank of America has switched to a new leverage regime 18 months before US banks are required to move, dramatically cutting its total exposure – but finding itself alone among its domestic rivals. BofA is expected to use the move to the standardized approach to counterparty credit risk (SA-CCR) as a springboard for its equity prime brokerage business, which consumes less capital under the new rules. Options market-makers have also welcomed the switch, believing they will be more attractive.
