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Global regulators reach agreement on bail-in bonds plan for top banks
Global regulators reached a draft agreement Friday on a rule on stopping banks being "too big to fail", by requiring them to hold enough equity capital and bonds to avoid taxpayers being called on in a crisis. The proposed rule is known as total loss absorbency capacity or TLAC, and is considered to be the last major reform after the 2007-09 financial crisis forced governments to shore up lenders. The rule will apply to nearly all the 30 big banks the FSB has already deemed to be "globally systemic" such as Goldman Sachs (GS.N), Deutsche Bank (DBKGn.DE) and HSBC (HSBA.L). "At today's meeting FSB members discussed the ... (full story)