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Today, SIFMA issued the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, on the Federal Reserve’s final total loss absorbing capacity (TLAC) rule. The final rule requires designated global systemically important banks to maintain additional resources for loss absorbing capacity and imposes new structural and legal requirements that serve as an important component in ending ‘too big to fail.’:
“A properly structured and calibrated TLAC requirement is an important component in the effort to end ‘too big to fail.’ This final rule ensures U.S. G-SIBs have adequate loss absorbing capacity to resolve, eliminating the risk of a taxpayer bailout. We appreciate the Fed taking into consideration our comments and look forward to working with the next administration on efforts to create balanced regulations that eliminate systemic risk without restricting liquidity to the detriment of our markets.”
