Megabanks Release Plans for Fed-Assisted Suicide

Want to know how Wall Street’s biggest names plan to die gracefully? Now you can.

Wall Street's big bulls reveals new shutdown plans Thursday.
National Journal
Patrick Reis
Oct. 3, 2013, 6:31 a.m.

Since the 2008 fin­an­cial col­lapse, Wall Street’s biggest banks have prom­ised they have plans in place to col­lapse without drag­ging the world eco­nomy down with them. Now the pub­lic can see how they plan to do it.

The Fed­er­al Re­serve Board on Thursday re­leased a por­tion of the banks’ plans for “rap­id and or­derly res­ol­u­tion” in the event their fin­ances fall apart and they col­lapse.

The plans re­leased today are the banks’ second at­tempt to sell reg­u­lat­ors on their res­ol­u­tion plans. The Fed — along­side their co-reg­u­lat­or, the Fed­er­al De­pos­it In­sur­ance Corp. — re­jec­ted a round of plans sub­mit­ted in 2012, say­ing they were in­ad­equate to en­sure the sys­tem would re­main stable.

The plans are a re­quire­ment of the 2010 Wall Street re­form law and are a key piece of Con­gress’s ef­forts to ward off fu­ture tax­pay­er bail­outs for the largest banks.

The cur­rent set of re­quire­ments is for fin­an­cial firms that con­trol $100 bil­lion or more in U.S. non­bank as­sets, and some of the firms are lis­ted as con­trolling more than $250 bil­lion in U.S. non­bank as­sets. Those in­clude Bank of Amer­ica, Barclays, Cit­ig­roup, Gold­man Sachs, and JP­Mor­gan Chase. 

Banks with between $50 bil­lion and $100 bil­lion are re­quired to sub­mit their plans by the end of 2013.

Un­der the law, the banks must make a por­tion of their plans pub­lic, but there is a con­fid­en­tial sec­tion as well. Be­low are links to the pub­lic sec­tions of some of the best-known banks.

Bank of Amer­ica, Barclays, Cit­ig­roup, Deust­che Bank, Gold­man Sachs, JP­Mor­gan Chase, Mor­gan Stan­ley and Wells Fargo. Here’s the Fed’s an­nounce­ment and full list.

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