Exclusive: Wall Street banks see green light from Fed on reserves - sources

NEW YORK/WASHINGTON (Reuters) - Wall Street banks believe they are getting a green light from supervisors to hold more Treasury debt and less cash after last month's volatility in overnight lending markets, three industry sources told Reuters.That change could help boost liquidity in the overnight lending markets, because Treasury bonds are a common type of collateral pledged by companies and investors in exchange for cash. Banks have complained for years that the U.S. Federal Reserve can be..