[T]his is finance, so the regulator’s proposals inevitably come cloaked in impenetrable jargon dotted with obscure acronyms. The relevant measure of capital (equity plus the at-risk debt) is called “total loss-absorbing capacity” or TLAC. The ratio will only apply to the most important institutions, dubbed global systemically important banks (G-SIB). It is hard to see the public marching behind Mark Carney, who heads both the FSB and the Bank of England, shouting, “What do we want? Higher TLAC for G-SIBs. When do we want it? Phased in between 2019 and 2022, except for emerging-market banks which will have till 2025 to 2028 to comply.”
"Buttonwood: Born to Run," The Economist, Volume 417 Number 8964, November 14th-20th 2015, 72, Accessed on November 19, 2015, http://www.economist.com/news/finance-and-economics/21678259-bonds-will-take-hit-when-banks-fail-born-run
That's The Economist on the Financial Stability Board's new guidelines for bank balance sheets. Their idea is for private investors to bear the cost of bank failure by issuing special bonds with terms indicating that bondholders will be the first to take a hit should something go south with the bank. This way losses would be absorbed by bondholders rather than depositors. Therefore, it is thought, bank runs will be less likely.
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