The Board of Governors of the Federal Reserve System ("FRB") adopted a final total loss-absorbing capacity ("TLAC") rule that requires U.S. top-tier bank holding companies, which are identified as global systemically important banking organizations ("GSIBs"), to maintain a minimum amount of outstanding loss-absorbing instruments, including a minimum amount of unsecured long-term debt that can be converted to equity during resolution.
The final rule was published in the Federal Register and will become effective on March 27, 2017.
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