Skip to comments.Big US banks submit "living wills" to regulators
Posted on 07/03/2012 3:05:19 PM PDT by Libloather
Big US banks submit "living wills" to regulators
By ALEX VEIGA, AP Business Writer 1 hour ago
Nine of the largest U.S. banks have submitted plans offering roadmaps for how the government could 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 is trying to prevent another situation in which taxpayers are asked to provide bailouts to banks, which is what happened during the 2008 financial crisis. At the time, regulators didn't have rules in place to unwind banks considered "too big to fail."
(Excerpt) Read more at google.com ...
Only the management and officers of these institutions know where the assets are, how to unwind the hedges, etc.
The alternative is to get sued for millions of dollars individually by the FDIC.
If the federal regulators suddenly develop an interest in demolishing these mostly-viable institutions, it only makes sense to devise a demolition plan.
I wish the last bank I worked for had done that; I would otherwise not have found myself a prisoner and indentured servant of the FDIC while they sorted it all out.
Totally unecessary, by the way.
So now the FDIC and the Government has the bank’s proprietary information - probably to be shared with their higher bidders, I mean donors.
These outfits control a big chunk of the U.S. agricultural sector.
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