Regulators propose changes to ‘living wills’ and debt rules for big banks in wake of crisis

Federal financial regulators are proposing new rules that would require larger banks to maintain a layer of long-term debt in order to increase financial stability and facilitate the resolution of potential bank failures, following a series of regional bank collapses earlier this year.

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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.

9/12/2023

U.S. Banks Accuse Regulators of Violating Laws with Capital Requirements Proposal

U.S. bank groups, including JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Citigroup, have accused the Federal Reserve and other regulators of violating federal laws with a proposal to raise capital requirements, arguing that it lacks sufficient public data and analysis.