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.

reuters.com

Relevant topic timeline:

8/25/2023

'Mind-blowing' US debt binge amid high interest rates is threatening financial stability, Larry McDonald says

The US government's debt has reached a record high of almost $33 trillion, causing concerns about its impact on the nation's finances and the risk of a debt crisis, according to experts like Larry McDonald, Ray Dalio, and Nouriel Roubini.

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

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.

9/10/2023

U.S. National Debt Nears $33 Trillion and 100% of GDP, Raising Economic Concerns

The U.S.'s national debt has reached nearly $33 trillion and while debt has its uses, concerns are rising about its impact on the economy, particularly as the debt-to-GDP ratio nears 100%.

9/13/2023

Bank Deposits See Biggest Outflow Since Failure of Silicon Valley Bank as Fed Ramps Up Support for Distressed Banks

US banks are experiencing significant deposit outflows, with total bank deposits plunging by over $70 billion in a week, the lowest levels since May, leading to concerns about the ongoing regional banking crisis; meanwhile, US commercial banks have also suffered significant losses in deposits, with 60% of deposits moving to higher-yielding money market funds, and the balance of unrealized losses on securities at commercial banks rising to $558 billion in Q2; to address these issues, the Federal Reserve has reached an all-time high of $107.8 billion in its banking loan facility to provide funding to distressed banks.

9/17/2023

5 Facts About the U.S. Debt That Dispel Common Misconceptions

The US's $32 trillion debt may not be as dire as it seems, as experts point out misconceptions about the national deficit and its impact on the economy. However, future debt problems could arise due to current spending rates.

9/18/2023

US National Debt Hits Record $33 Trillion as Leaders Debate Raising Debt Ceiling Again

The US national debt has reached a record high of $33 trillion, prompting the need for leaders to decide whether to raise the debt ceiling, as inflation continues to rise and there is a looming government shutdown.

Topics

Posted 8/29/2023, 8:00:00 PM

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

reuters.com

Relevant topic timeline:

8/25/2023

'Mind-blowing' US debt binge amid high interest rates is threatening financial stability, Larry McDonald says

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

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.

9/10/2023

U.S. National Debt Nears $33 Trillion and 100% of GDP, Raising Economic Concerns

The U.S.'s national debt has reached nearly $33 trillion and while debt has its uses, concerns are rising about its impact on the economy, particularly as the debt-to-GDP ratio nears 100%.

9/13/2023

Bank Deposits See Biggest Outflow Since Failure of Silicon Valley Bank as Fed Ramps Up Support for Distressed Banks

9/17/2023

5 Facts About the U.S. Debt That Dispel Common Misconceptions

9/18/2023

US National Debt Hits Record $33 Trillion as Leaders Debate Raising Debt Ceiling Again