Federal Reserve Adopts Final Rules Establishing Total Loss-Absorbing Capacity and “Clean Holding Company Requirements” for GSIBs
On December 15, the Federal Reserve finalized rules that establish minimum required amounts of long-term debt and total loss-absorbing capacity for the top-tier U.S. bank holding companies of global systemically important banking organizations. The final rules also impose restrictions referred to as “clean holding company requirements” on other liabilities that such entities may have outstanding. The final rules take effect January 1, 2019.