US banks see last opportunity to alter TLAC

摘要

Can the TLAC bonds of the eight largest US banks be counted as regulatory capital? The Federal Reserve sidestepped the question when it approved its final rules late last year. Initially the Fed was teed up to force banks to deduct the amount of any investment in, or exposure to, unsecured debt issued by a covered bank holding company intended to absorb losses in a failure - including the eight largest US banks - from regulatory capital.