US financial regulators green lit new rules aimed at reducing the cost of bank failures

US financial regulators have approved new rules requiring banks with at least $100 billion in assets to issue around $70 billion in long-term debt in order to prevent bank failures and the need for government bailouts.

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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.

8/30/2023

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.

8/30/2023

US Fed ramps up demands for corrective actions by regional banks - Bloomberg News

The Federal Reserve has issued private warnings to several banks with assets of $100 billion to $250 billion, focusing on capital, liquidity, technology, and compliance.

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.

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Posted 8/29/2023, 10:56:00 PM

US financial regulators green lit new rules aimed at reducing the cost of bank failures

cnn.com

Relevant topic timeline:

8/29/2023

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

8/30/2023

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

8/30/2023

US Fed ramps up demands for corrective actions by regional banks - Bloomberg News

The Federal Reserve has issued private warnings to several banks with assets of $100 billion to $250 billion, focusing on capital, liquidity, technology, and compliance.

9/13/2023

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