Posted On: 08/06/2014 8:56:25 AM
Post# of 63821
REGULATORS: BIG BANK LIVING WILLS FALL SHORT
The FDIC and the Federal Reserve found that the latest resolution plans submitted by the 11 biggest U.S. banks have serious shortcomings. The FDIC went so far as to call the plans “not credible” — an important distinction under the law — and said the firms must make changes to make it easier for regulators to resolve them before the next round of plans are due in 2015.
WSJ’s Ryan Tracy, Victoria McGrane and Christina Rexrode: “The Federal Reserve and the Federal Deposit Insurance Corp. said bankruptcy plans submitted by big banks make ‘unrealistic or inadequately supported’ assumptions and ‘fail to make, or even to identify, the kinds of changes in firm structure and practices that would be necessary to enhance the prospects for’ an orderly failure.
“The regulators raised the specter of slapping banks with tougher rules on capital and leverage or restrictions on growth — and even eventually forcibly breaking them up — should they fail to make significant progress to address the shortcomings by July 2015.”
http://on.wsj.com/1p95whp
The FDIC and the Federal Reserve found that the latest resolution plans submitted by the 11 biggest U.S. banks have serious shortcomings. The FDIC went so far as to call the plans “not credible” — an important distinction under the law — and said the firms must make changes to make it easier for regulators to resolve them before the next round of plans are due in 2015.
WSJ’s Ryan Tracy, Victoria McGrane and Christina Rexrode: “The Federal Reserve and the Federal Deposit Insurance Corp. said bankruptcy plans submitted by big banks make ‘unrealistic or inadequately supported’ assumptions and ‘fail to make, or even to identify, the kinds of changes in firm structure and practices that would be necessary to enhance the prospects for’ an orderly failure.
“The regulators raised the specter of slapping banks with tougher rules on capital and leverage or restrictions on growth — and even eventually forcibly breaking them up — should they fail to make significant progress to address the shortcomings by July 2015.”
http://on.wsj.com/1p95whp
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