TLAC Resource Center

As the Total Loss-Absorbing Capacity framework is rolled out around the globe, Cleary Gottlieb lawyers on both sides of the Atlantic are helping clients understand and comply with these new requirements.

Below are links to Cleary Alert Memos addressing the global TLAC standard and its implementations in Europe, the UK and the U.S., as well as related primary source materials and key news items. We will be updating this page periodically.

International Standards

• Guiding Principles on the Internal Total Loss-Absorbing Capacity of G-SIBs (‘Internal TLAC’) (December 16, 2016)
• Guidance on Continuity of Access to Financial Market Infrastructures (“FMIs”) for a Firm in Resolution (December 16, 2016)
• Financial Stability Board Proposes TLAC Requirements for G-SIBS (January 7, 2015)
• Principles on Loss-Absorbing and Recapitalisation Capacity of G-SIBs in Resolution: Total Loss-Absorbing Capacity (TLAC) Term Sheet

Europe: TLAC and MREL

• Analysis
  
  • Beyond Bail-in: EU Proposals on Moratorium and Creditor Hierarchy (December 12, 2016)
  • EU Proposes Intermediate Holding Company Requirements for Non-EU Banks and Broker-Dealers (November 24, 2016)
  • Comparison of FSB TLAC Standards to Federal Reserve TLAC Proposal (November 20, 2015)
  • Beyond Bail-in: German and Italian Proposals Affecting Bondholder Rights (September 21, 2015)
• Legislative and Regulatory Proposals
  
  • CRR/CRD IV Review
  • Proposal for amending the Capital Requirements Regulation (includes IHC proposal, among others)
  • Proposal for amending the Capital Requirements Regulation (includes TLAC and Basel leverage ratio and NSFR rules, among others)
  • Crisis Management
  • Proposal for amending the Bank Recovery and Resolution Directive (MREL)
  • Proposal for amending the Bank Recovery and Resolution Directive (insolvency hierarchy)
  • Final Report on MREL: Report on the Implementation and Design of the MREL Framework (European Banking Authority) (December 14, 2016)
  • Interim Report on MREL: Report on Implementation and Design of the MREL Framework (European Banking Authority) (July 19, 2016)
  • The Bank of England’s approach to setting a minimum requirement for own funds and eligible liabilities (MREL) (November 2016)

U.S. TLAC Implementation

• Analysis
  • Final TLAC Rule: Federal Reserve Responses to FBO Comments (December 16, 2016)
  • Final TLAC Rule: Effect on U.S. GSIB Debt (December 15, 2016)
  • Comparison of FSB TLAC Standards to Federal Reserve TLAC Proposal (November 20, 2015)
  • The Federal Reserve Proposes TLAC and Related Requirements for U.S. G-SIBs and U.S. IHCs of Foreign G-SIBs (October 31, 2015)
• Regulations
  • Final Rule: Federal Register and Board Memo
  • Proposed Rule: Federal Register and Board Memo
  • Key Comment Letters: 
    • IIB (February 19, 2016)
    • IIB, TCH and SIFMA (July 1, 2016)
    • TCH, SIFMA, ABA, FSR and FSF (February 19, 2016)
    • TCH, SIFMA, ABA and FSR (January 25, 2016)