Receiving Wide Coverage...
TLAC, Part II: Not quite two weeks after the Federal Reserve Board released its contentious total loss absorbing capacity (TLAC) proposal, the Financial Stability Board updated its own plan to force "systemically important" banks to issue more debt in order to prevent future global financial crises.
The FSB's version calls for these banks to build by 2019 a cushion of at least 16% of their risk-weighted assets in equity and debt, similar to what...
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