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.
What We're Following See More »
Paul Ryan told CNN today he's "not ready" to back Donald Trump at this time. "I'm not there right now," he said. Ryan said Trump needs to unify "all wings of the Republican Party and the conservative movement" and then run a campaign that will allow Americans to "have something that they're proud to support and proud to be a part of. And we've got a ways to go from here to there."
In The New Yorker, Jeffrey Toobin gives Preet Bharara, the U.S. Attorney for the Southern District of New York, the longread treatment. The scourge of corrupt New York pols, bad actors on Wall Street, and New York gang members, Bharara learned at the foot of Chuck Schumer, the famously limelight-hogging senator whom he served as a member of the Senate Judiciary Committee staff. No surprise then, that after President Obama appointed him, Bharara "brought a media-friendly approach to what has historically been a closed and guarded institution. In professional background, Bharara resembles his predecessors; in style, he’s very different. His personality reflects his dual life in New York’s political and legal firmament. A longtime prosecutor, he sometimes acts like a budding pol; his rhetoric leans more toward the wisecrack than toward the jeremiad. He expresses himself in the orderly paragraphs of a former high-school debater, but with deft comic timing and a gift for shtick."
President Obama has announced another round of commutations of prison sentences. Most of the 58 individuals named are incarcerated for possessions with intent to distribute controlled substances. The prisoners will be released between later this year and 2018.
The Daily Beast has unearthed a piece that Donald Trump wrote for Gear magazine in 2000, which anticipates his 2016 sales pitch quite well. "Perhaps it's time for a dealmaker who can get the leaders of Congress to the table, forge consensus, and strike compromise," he writes. Oddly, he opens by defending his reputation as a womanizer: "The hypocrites argue that a man who loves and appreciates beautiful women (and does so legally and openly) shouldn't become a national leader? Is there something wrong with appreciating beautiful women? Don't we want people in public office who show signs of life?"