Mar
03
Fed’s Bank-Failure Plan Prompts HSBC to Alter 2016 Debt Strategy
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HSBC Holdings Plc alone will issue TLAC-eligible debt in 2016
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Fed plan seeks to avert threats to U.S. financial stability
HSBC Holdings Plc altered its strategy for issuing loss-absorbing debt required by regulators to comply with rules proposed by the Federal Reserve for large foreign banks operating in the U.S.
Under the rules on total loss-absorbing capacity, or TLAC, approved by Group of 20 leaders in November, the world’s most systemically important banks, like HSBC, must have liabilities and instruments “readily available for bail-in” equivalent to at least 16 percent of risk-weighted assets by 2019. The Fed proposed that foreign banks would have to issue eligible debt “internally, from the U.S. operations to the foreign parent,” rather than sell it to external investors…
Fed’s Bank-Failure Plan Prompts HSBC to Alter 2016 Debt Strategy
