- Compliance & Regulation, Risk
Preparing for the Long-Term Debt Rule (Part I: The Requirements)
Peter Kapp
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In August 2023 the Federal Reserve, OCC, and FDIC jointly proposed long-term debt (LTD) requirements for large banks. The proposal extends the scope of some of the rules currently applicable to global systemically important banks (GSIBs) and is informed by the regional bank failures in 2023. These failures demonstrated the risk of a deposit run and the value of having resources available to allocate losses from a failed bank to investors.
The…
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