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
Add to Briefcase
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 »
RELIEVES MARK TONER
Former Fox Anchor Heather Nauert to Be State Dept. Spokeswoman
4 hours ago
THE DETAILS
NOT WORRIED ABOUT BUDGET NEUTRALITY
Trump Wants to Slash Corporate Rate to 15%
6 hours ago
THE LATEST
PROMISES “MASSIVE” CUTS
Trump Tax Reform Package Coming Next Week
6 hours ago
THE LATEST

President Trump today said he'll be releasing his tax reformpacakge next week around the 100-day mark of his presidency. He promised that "businesses and individuals will receive a 'massive tax cut ... bigger I believe than any tax cut ever."

Source:
ONLY BROAD PRINCIPLES
Mulvaney: Tax Reform Details Won’t Be Released This Week
6 hours ago
THE LATEST

Despite President Trump's announcement that his tax reform proposal would be released this week, Office of Management and Budget Director Mick Mulvaney now says it will be ready in June. This week's announcement will be limited to "specific governing principles."

Source:
OFFSHORE OIL AND GAS
Trump To Sign Order Calling For Expanded Drilling
10 hours ago
THE DETAILS

Donald Trump is expected Monday to sign an executive order which will mark his administration's first action on offshore oil and gas drilling. The order is expected to call for a "review of the locations available for offshore oil and gas exploration and of certain regulations governing offshore oil and gas exploration."

Source:
×
×

Welcome to National Journal!

You are currently accessing National Journal from IP access. Please login to access this feature. If you have any questions, please contact your Dedicated Advisor.

Login