What’s happening?
In October 2015, the US Federal Reserve published a consultation on requirements for total loss-absorbing capacity (TLAC). This is the combination of equity and debt that could be written off or bailed in to recapitalise a systemic bank in resolution. The TLAC standards would apply to the bank holding companies of US global systemically important banks (GSIBs) and also to large intermediate holding companies (IHCs) owned by foreign banks.