Fed tweaks TLAC rules to help banks make distributions
The US Federal Reserve has made it easier for the country's banks to eat into their total loss-absorbing capacity (TLAC) buffers without facing restrictions on equity and debt distributions.
Ordinarily, if US banks do not meet all of their TLAC buffers, they may no longer be permitted to make discretionary payments to their common or preferred shareholders.Upon breaching their requirements, they have to calculate how much room they have left to make distributions with reference ...
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