Using Subordinated Debt as an Instrument of Market Discipline
Source: Federal Reserve

Introduction
1.  Why a Subordinated Debt Policy?

2.  Evidence on the Potential Market-Discipline Effects of Subordinated Debt

3.  Analysis of the Key Characteristics of a Subordinated Debt Policy

4. Conclusion

Appendixes

A.  Members of the Federal Reserve System Study Group on Subordinated Notes and Debentures 
B.  A Summary of Interviews with Market Participants 
C.  Avoiding Subordinated Debt Discipline 
D.  Macroeconomic Effects of Mandatory Subordinated Debt Proposals 
E.  Treatment of Subordinated Debt in Risk-Based Capital 
F.  The Argentine Experience with Mandatory Bank SND