FDIC’s Hoenig: don’t impose TLAC, let equity 'do its job'
FDIC vice-chair says TLAC should reflect individual bank business models
Regulators should rely on equity to absorb bank losses, rather than pushing ahead with the new concept of bail-in debt, according to Thomas Hoenig, vice-chairman of the Federal Deposit Insurance Corporation (FDIC).
That would imply higher minimum equity levels. Bail-in debt – which can be written down to support the resolution of a stricken bank – would make up around one-third of a large bank's total loss-absorbing capacity (TLAC), the final standards for the regime having been issued by the
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