Federal Register: FRB Adopts TLAC Final Rule and Clean Holding Company Requirements for GSIBs

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. Further, the final rule requires full compliance by January 1, 2019.