POLICY GROUP SPEAKS OUT

The Center for Capital Markets Competitiveness, affiliated with the US Chamber of Commerce, has issued an open letter expressing concern regarding a number of issues relating to TLAC or Total Loss Absorbing Capital requirements, for commercial banks. Their concerns include uncertainty regarding grandfathering rules relating to currently issued capital notes and the TLAC rules (which makes the amount of needed capital to raise unclear), highly restrictive definitions for eligible capital securities for the measure, sizing of the TLAC buffers and surcharges and their calibration which appear excessive, unclear rules for IHCs, an unrealistic compliance deadline of January 2019, and the so-called capital deduction for investments rule for holding TLAC of other issuers.  This letter highlights some of the issues facing banks today in their compliance of new regulatory standards. For more information, check out this link: http://www.centerforcapitalmarkets.com/wp-content/uploads/2016/02/2016-2.11-CCMC-Comment-Letter-re-TLAC.pdf).