Big U.S. Banks to Submit “Living Wills” to Regulators
Nine of the largest U.S. banks have submitted plans to the federal regulators that show how they would break up and sell off their assets if they are in danger of failing.
The Federal Deposit Insurance Corp. released summaries of the “living wills” on Tuesday for Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and UBS.
The plans were required under the 2010 financial overhaul, which gave regulators the power to seize and dismantle banks that threaten the broader financial system.
The government did not have a plan for winding down troubled banks during the 2008 financial crisis. Instead, it provided taxpayer-funded bailouts to the banks.
More than 100 other banks are required to submit living wills by the end of next year.
(Copyright 2012 by The Associated Press. All Rights Reserved.)