Big banks may have to $500bn in bonds to shield against future failures

The world's 30 biggest banks will have to issue more than $500 billion in bonds to comply with proposed global rules aimed at shielding taxpayers from the risk of future banking failures, credit rating agency Standard & Poor's (S&P) said on Tuesday.

Reuters reports that leaders of the Group of 20 economies (G20) have proposed that 30 so-called globally systemic banks (G-SIBs) such as Goldman Sachs, HSBC and Societe Generale should hold a buffer of bonds equivalent to between 16 and 20 percent of their risk-weighted assets such as loans, perhaps by 2019.

The proposal was agreed in principle at a G20 summit last November, with a Feb. 2 deadline for consultation on the detail. 

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Big banks face $500bn 'bail in' bonds bill - S&P

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