Deutsche Bank and Barclays have had the capital equivalent of a Sword of Damocles hanging over them this year. The two banks are most at risk if U.S. regulators force foreign lenders to hold more funds in New York. But there could be a workaround.
The blueprint is Credit Suisse’s recent organizational revamp. The Swiss bank rearranged itself on Nov. 21 into four regional hubs: Singapore, London, New York and Zurich. But it still pressed on with plans to raise a big slug of bail-in-able debt at group level, which could be deployed if the bank got into trouble.