Fed set to release TLAC rule proposals that could lead to US$234bn of issuance

摘要

The US Federal Reserve is expected to release its proposed rules for total loss absorbing capital in coming days that will ensnare Wells Farco, JP Morgan, Bank of America and Citicroup, forcing the banks to raise as much as US$234bn. TLAC is designed to ensure that systemically important banks have sufficient long-term debt that can be converted into equity - or bailed in - in the event of a financial crisis. TLAC can comprise debt instruments that can be written down or converted into equity, together with long-term unsecured debt such as subordinated and senior debt.