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Can Taking on More Debt Solve Problems for Regional Banks?

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A lot of discussion right now is about the bonds that American banks hold. There should be more about the bonds they issue, too. For some, taking on more debt could have been helpful.

One tidbit from lawmakers’ grilling of regulators should catch investors’ attention: a proposal to expand a requirement for issuing long-term debt. Today this debt requirement applies only to megabanks with over $700 billion in assets, the likes of JPMorgan Chase or Bank of America. Regulators are looking at expanding it to banks with over $250 billion of assets and even smaller, The Wall Street Journal has reported.

Source : Can Taking on More Debt Solve Problems for Regional Banks?

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