Regulators Find Shortcomings in Resolution Plans at Six Large U.S. Banks
By Andrew Ackerman
Regulators on Tuesday said they had found “shortcomings” in the resolution plans at six of the largest U.S. banks, while none of the eight major banks they examined had more serious “deficiencies.” The Federal Reserve and Federal Deposit Insurance Corp. said the firms, including Bank of America Corp. , Citigroup Inc. and Wells Fargo & Co. had shortcomings related to their ability to reliably produce data needed to execute orderly wind-downs, also known as living wills, “in stressed conditions.” Tuesday’s findings are a turnabout from just three years ago, when the Fed ordered five big U.S. banks to make significant revisions to their plans, citing deficiencies. “The largest banks have been making steady progress, and the regulators are in greater agreement on what progress is than in prior rounds,” said Karen Petrou, managing partner of Federal Financial Analytics, a regulatory advisory firm. Wells Fargo said it was pleased the Fed found no deficiencies with its plan.