Finance
US Weighs Imposing Long-Term Debt Requirements on More Banks
- FDIC Chair Gruenberg discusses rule plan in Monday speech
- Proposal would be latest response to this year’s bank failures
The FDIC headquarters in Washington.
Photographer: Al Drago/BloombergThis article is for subscribers only.
US regulators will soon propose requiring banks with as little as $100 billion in assets to issue enough long-term debt to cover capital losses if they ever failed.
The Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of the Currency are working on the plan as part of Washington’s response to this year’s failures of midsize lenders, according to FDIC Chairman Martin Gruenberg. The move could lead to more options for bank resolutions and reduces incentives for uninsured depositors to yank their cash, he said.