Three Banks’ Too-Big-to-Fall Plans Hamper ETN Sales
This article is for subscribers only.
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.