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The department is currently engaged in a pilot project under which a small subset of public housing authorities will be allowed to leverage private capital to make the needed repairs on their properties.
And rightly so: Reason must prevail and politics should not be allowed to leverage the central bank or even change its mission.
Comcast can't be allowed to leverage control over its programs through control of its vast network to harm consumers or to impede competition.
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Certainly workers must be allowed to use their best leverage -- the walkout -- to protect themselves from unbridled greed.
And any institution that can credibly claim to be so systematically risky that it can't be allowed to fail then it should have leverage ratios that run it like a public utility.
Banks had been allowed to operate with too much leverage, and financial innovation hid some of that leverage.
The back story to the current crisis is the way traditional banks — banks with federally insured deposits, which are limited in the risks they're allowed to take and the amount of leverage they can take on — have been pushed aside by unregulated financial players.
These days, though, those who've done wrong are allowed to use their transgressions as the leverage necessary to rejoin the public sphere.
The leverage they have been allowed to assume has increased over the years.
Under Basel II, banks were allowed to have less equity funding and more leverage (i.e., more debt relative to their balance sheets).
Some banks have argued that such limits do not take into account the quality of a bank's assets, and that institutions with gilt-edged assets — solid corporate loans or government bonds — should be allowed higher leverage ratios.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com