Fed under pressure to rethink TLAC rules

US becomes the first G20 nation to propose total loss absorbing capacity rules, but deems existing debt ineligible for inclusion

Paul Tucker: "TLAC isn’t about faith; it’s about contracts"

Even by Wall Street standards, $363 billion is a big number. That is the estimated shortfall in outstanding long-term debt that needs to be made up by the eight US global systemically important banks (G-Sibs) by 2019, in order to satisfy their total loss-absorbing capacity (TLAC) requirements.

The deficit, calculated by a group of five US bank trade associations, is three times the size of the Federal Reserve’s own estimate. In its October 2015 rule, proposing the TLAC requirements, the US

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here