Ally says only a third of long-term debt qualifies for Fed bail-in rule

Bank holding company would face shortfall of $3.5 billion of debt under new standards

Less than a third of Ally Financial’s long-term debt at holding-company level – and none at ring-fenced level – will qualify for incoming standards on US regional banks’ bail-in capacity, the group said as it provided one of the first such assessments in the industry.

Around $6.2 billion of long-term debt (LTD), out of $21 billion outstanding at group level at end-September, will be eligible for grandfathering towards requirements outlined by the Federal Reserve in August, Ally told investors