WASHINGTON--Nine large banks on Tuesday provided a glimpse of road
maps they have prepared to quickly liquidate themselves in a crisis.
The plans, known as "living wills", were mandated by the 2010
Dodd-Frank financial overhaul law to help end the perception that
firms are "too-big-to-fail," so large and complex that the government
would choose to rescue them in a crisis to prevent them from failing
and potentially dragging down other firms.
Around 125 large financial companies are required by the law to submit
living wills to the Federal Reserve and the Federal Deposit Insurance
Corp. by the end of 2013. Parts of the plans must be made public.
The first batch of nine banks, including Deutsche Bank AG (DBK.XE) and
Barclays PLC (BARC.LN), had to submit their road maps by Sunday, and
on Tuesday the FDIC and the Fed posted snapshots of the plans on their
websites.
The U.S. banks that submitted summaries were J.P. Morgan Chase (JPM),
Citigroup Inc., (C), Goldman Sachs Group Inc. (GS), Morgan Stanley
(MS) and Bank of America Corp. (BAC). Among foreign banks, UBS
(UBSN.VX) and Credit Suisse (CSGN.VX) also released summaries.
-Write to Jessica Holzer at jessica.holzer@dowjones.com
(END) Dow Jones Newswires
July 03, 2012 14:45 ET (18:45 GMT)
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