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Three Banks’ Too-Big-to-Fall Plans Hamper ETN Sales

At least three major U.S. banks trying to show they’re not too big to fail said they stopped issuing very short-term debt, halting growth in their exchange-traded note programs in a way that may put investors at risk of losses.

Morgan Stanley, Citigroup Inc. and Goldman Sachs Group Inc. aren’t issuing new shares of their ETNs, which count as short-term debt because holders can typically redeem them on about a week’s notice, according to “living wills” submitted to the Federal Deposit Insurance Corp. and the Federal Reserve last month, details of which were released Monday. Existing shares will continue to trade.