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 »
"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."
"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."
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).