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.
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Much has been made of David Brooks’s recent New York Times column, in which confesses to missing already the civility and humanity of Barack Obama, compared to who might take his place. In NewYorker.com, Jeffrey Frank reminds us how critical such attributes are to foreign policy. “It’s hard to imagine Kennedy so casually referring to the leader of Russia as a gangster or a thug. For that matter, it’s hard to imagine any president comparing the Russian leader to Hitler [as] Hillary Clinton did at a private fund-raiser. … Kennedy, who always worried that miscalculation could lead to war, paid close attention to the language of diplomacy.”
“We haven’t seen a true leftist since FDR, so many millions are coming out of the woodwork to vote for Bernie Sanders; he is the Occupy movement now come to life in the political arena.” So says Bill Maher in his Hollywood Reporter cover story (more a stream-of-consciousness riff than an essay, actually). Conservative states may never vote for a socialist in the general election, but “this stuff has never been on the table, and these voters have never been activated.” Maher saves most of his bile for Donald Trump and Sarah Palin, writing that by nominating Palin as vice president “John McCain is the one who opened the Book of the Dead and let the monsters out.” And Trump is picking up where Palin left off.