Federal Regulators Approve ‘Living Wills’ for Eight Big Banks - ABI

Federal regulators yesterday announced they had approved the disaster plans for the nation's eight largest and most complex banks outlining the strategies they would deploy if they fell into bankruptcy, the Associated Press reported. The announcement by the Federal Reserve and the Federal Deposit Insurance Corp. came after the two agencies in April 2016 deemed that the plans of five of the eight banks were deficient. Congress imposed the requirement to write the plans, dubbed "living wills," in the 2010 Dodd-Frank financial overhaul legislation that sought to avoid a repeat of the 2008 financial crisis. While approving the plans of all eight banks, the regulators found in their latest review that the plans of four — Bank of America, Goldman Sachs, Morgan Stanley and Wells Fargo — had shortcomings that will need attention in the next round of review. Regulators found no shortcomings in the plans submitted by the other four — Bank of New York Mellon, Citigroup, J.P. Morgan Chase and State Street.

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