"US regulators will soon propose requiring banks with as little as $100 billion in assets to issue enough long-term debt to cover capital losses if they ever failed." [Bloomberg (Aug 14, 2023)] and "U.S. bank regulator the Federal Deposit and Insurance Corporation (FDIC) will on Aug. 29 propose new rules ... [to] require banks of $100 billion or more in assets to issue long-term debt that could absorb bank losses before depositors and the FDIC's deposit insurance fund do". [Reuters (Aug 22, 2023)]
This may sound familiar because apes commented against the Federal Reserve & FDIC looking for bag holders by requiring large banking organizations to maintain long term debt (e.g., bonds) capable of absorbing losses in bankruptcy. [SuperStonk DD: "COMMENT AGAINST the FEDERAL RESERVE & FDIC proposal setting up retirees and pensions as Bag Holders!" (9 months ago)"]
Their search for bag holders isn't even theoretical. When Credit Suisse was failing, Credit Suisse issued special AT1 bonds to raise funds from investors that would intentionally be wiped out.
