Banks Face Higher Stakes as They Prep New Living Wills
By
WASHINGTON — Federal regulators have upped the ante for the latest round of “living wills” that the 12 most complex banks must submit by Wednesday. The agencies delivered a stinging rejection of the plans last year, declaring them deeply flawed and warning that their next effort must both fix flaws and do a better job of conveying to the public how these firms might be unwound safely in the event of a crisis.Karen Shaw Petrou, managing partner of Federal Financial Analytics, said banks could provide more information in the public summaries by drawing a “link between other publicly announced actions and the resolution planning process.” A key failing of previous submissions was that institutions used overly optimistic assumptions, according to regulators.
http://www.americanbanker.com/news/law-regulation/banks-face-higher-stakes-as-they-prep-new-living-wills-1075148-1.html
