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.

What We're Following See More »
SUPPLY DROPPING
Brent Crude Rises Above $50/Barrel
43 minutes ago
THE LATEST

"Brent crude rose above $50 a barrel for the first time in more than six months as a decline in U.S. stockpiles accelerated a rebound from a 12-year low. Futures climbed as much as 1.1 percent in London to $50.26, the highest intraday price since Nov. 4, after climbing 2.9 percent the previous two sessions. U.S. inventories shrank more than expected last week, government data showed, while supplies have also been curtailed in Nigeria, Venezuela and Canada."

Source:
TEMPORARY OR NOT?
Rick Wiley Bolts the Trump Campaign
46 minutes ago
THE LATEST

"Donald Trump on Wednesday parted ways with Rick Wiley, his national political director, just six weeks after the Republican operative joined the campaign." Wiley joined just six weeks ago, as Trump said he would be a "tremendous asset as we enter the final phase." But yesterday, Trump said in a statement that "hired on a short-term basis as a consultant."

Source:
A COOL TEN GRAND
Bill Would Reward Gov’t Employees for Ratting Out Waste and Abuse
58 minutes ago
THE DETAILS

A bill that would "pay awards of up to $10,000 to federal workers who identify waste" cleared committee yesterday and is headed to the Senate floor. “I think it’s trying to align incentives in the government the way we do in the private marketplace,” said Sen. Rand Paul (R-KY), who sponsored the bill along with Sen. Mark Warner (D-VA).

Source:
ON GUN RIGHTS
Trump Jr. Meeting with GOP Members
15 hours ago
THE LATEST
CONTRARY TO REPORTS
Ryan Not Endorsing Trump Just Yet
19 hours ago
THE LATEST
×