The Board of Governors of the Federal Reserve System proposed a new rule to require globally systemic top-tier bank holding companies to maintain a minimum amount of loss-absorbing instruments to help mitigate the likelihood they will require government bailouts if they suffer catastrophic financial events. These instruments would be issued by the covered entities to third-party investors in order to pass potential losses of the companies to them. The goal of the rule, says the Fed, is to “mitigate risks to the financial stability of the United States that could arise from the material financial distress or failure of large, interconnected financial companies, including by ending market perceptions that certain financial companies are ‘too big to fail’ and would therefore receive extraordinary government support to prevent their failure.” The Fed estimates the annual aggregate cost of its proposed new measures to all covered entities would be between US $650 million and US $1.5 billion.