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
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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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