Regulatory Capital Treatment for Investments in Certain Unsecured Debt Instruments of G-SIBs

Published on:
January 31, 2020
Submitted to:
FRB, FDIC, OCC
Submitted by:
SIFMA, BPI, FSF

Summary

SIFMA and joint trades provided comments to the Office of the Comptroller of the Currency (OCC), Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) on the Federal Reserve Board’s proposal, issued jointly with the OCC and FDIC, Regulatory Capital Treatment for Investments in Certain Unsecured Debt Instruments of Global Systemically Important U.S. Bank Holding Companies, Certain Intermediate Holding Companies, and Global Systemically Important Foreign Banking Organizations. (FRB Docket No. R-1655 and RIN 7100 AF43).

See, also: Regulatory Capital Treatment of TLAC Holdings, June 7, 2019

Excerpt

January 31, 2020

Via Electronic Mail

Chief Counsel’s Office

Office of the Comptroller of the Currency

400 7th Street, SW, Suite 3E-218

Washington, D.C. 20219

Ann E. Misback, Secretary

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue, NW

Washington, D.C. 20551

Robert E. Feldman, Executive Secretary

Attention: Comments/Legal ESS

Federal Deposit Insurance Corporation

550 17th Street, NW

Washington D.C. 20429

Re: Regulatory Capital Treatment for Investments in Certain Unsecured Debt Instruments of Global Systemically Important U.S. Bank Holding Companies, Certain Intermediate Holding Companies, and Global Systemically Important Foreign Banking Organizations (Docket ID OCC–2018–0019 and RIN1557–AE38; FRB Docket No. R–1655 and RIN 7100 AF43; FDIC RIN 3064–AE79)

Ladies and Gentlemen:

The Bank Policy Institute, the Financial Services Forum and the Securities Industry and Financial Markets Association (the “Associations”)1 welcome the opportunity to supplement our comment letter dated June 7, 2019 (the “June Comment Letter”) and submission dated October 9, 2019 (the “October Submission”) on the agencies’ proposal2 addressing the regulatory capital treatment of advanced approaches firms’ investments in certain unsecured debt instruments of U.S. GSIBs, foreign GSIBs and the U.S. IHCs of foreign GSIBs, including debt that qualifies as total loss-absorbing capacity but does not qualify as regulatory capital (“TLAC-eligible debt”).

The Associations appreciate the agencies’ consideration of the June Comment Letter and the October Submission as well as the opportunity to discuss the June Comment Letter and the October Submission with the agencies in September and December 2019. In this letter, we respond to a number of the questions the agencies asked in December 2019.

1 See Annex A for a description of each of the Associations.

2 84 Fed. Reg. 13814 (Apr. 8, 2019).

Continue Reading

Details

Download

More Content

  • Letters
    Oct 22, 2026

    Treasury/IRS Notice 2026-49: Guidance on Section 324 of the SECURE 2.0 Act with Respect to Rollovers

    SIFMA supports modernizing retirement plan rollovers through standardized electronic processes, fraud safeguards and appropriate implementation timelines.
  • Amicus Briefs
    Oct 21, 2026

    In re USD LIBOR Litigation

  • Letters
    Oct 20, 2026

    SEC’s Proposed Rule Regulation Crypto Assets

    SIFMA and SIFMA AMG provide recommendations to the SEC on its proposed crypto asset regulation, addressing regulatory clarity, implementation and investor protection.

Get the latest trends, stats, and research on financial markets and securities.