Regulators now want regional banks to issue more debt to cover losses if they fail

Regulators have proposed new bank rules that would require lenders with $100 billion in assets to issue more long-term debt to absorb potential losses and prevent systemic worries and collapses.

yahoo.com

Relevant topic timeline:

8/29/2023

Regulators unveil plans to force regional banks to raise debt in case of failure

US banking regulators plan to require regional banks with at least $100 billion in assets to issue debt in order to protect depositors in the event of further failures.

8/29/2023

U.S. banks to raise $70 bln in debt under draft rules aimed at mitigating failures

Large regional banks in the United States may need to issue around $70 billion in fresh debt as part of a proposed rule aimed at strengthening the sector's resilience following the failure of three lenders earlier this year.