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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums5 'too big to fail' banks are violating Dodd-Frank rules
5 'too big to fail' banks are violating Dodd-Frank rules
by David Goldman @DavidGoldmanCNN
April 13, 2016: 9:19 AM ET
Five major U.S. banks are in violation of Dodd-Frank rules that are meant to prevent "too big to fail" institutions from causing another financial crisis.
Federal banking regulators rebuked JPMorgan Chase, Bank of America (BAC), Wells Fargo, Bank of New York Mellon (BKPRC) and State Street (STT) for their so-called living wills -- bankruptcy plans in the event of a failure.
The Dodd-Frank rules apply to banks with assets of $50 billion or more. Each bank has to outline its plans for a quick and orderly bankruptcy in the event that it encounters severe financial distress or if the company goes under.
But the Federal Reserve and the FDIC said the living wills of America's largest banks were "not credible or would not facilitate an orderly resolution" under the standard established in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The regulators warned that they will hit the banks with even more stringent requirements unless each of them get up to code by October 1.
Goldman Sachs (GS)' and Morgan Stanley's (MS) living wills were also found to be deficient, but regulators did not specifically outline plans for bringing them up to snuff. Citigroup's plan was approved, despite some shortcomings that the bank must address....
Read more:
http://money.cnn.com/2016/04/13/investing/dodd-frank-banks-living-wills/
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5 'too big to fail' banks are violating Dodd-Frank rules (Original Post)
think
Apr 2016
OP
KamaAina
(78,249 posts)1. Who makes those "living wills"?
That sounds like fun!
think
(11,641 posts)2. For the banks it seems the rules will change at their will so perhaps in reality the banks do....
annabanana
(52,791 posts)3. ZOMIGOD!
They rebuked them? THAT ought to put the fear of god in 'em!
think
(11,641 posts)4. Thanks for a huge laugh and big ole grin!
That cracked me up!
nadinbrzezinski
(154,021 posts)5. Well been an issue since 2012
But good for CNN to pretend to cover this. They have also failed stress test after stress test
yourpaljoey
(2,166 posts)6. They need Obama's signature sauce; Legacy Edition: Chains to berieve in
Hey, it was good enough for We The People!!