Posted on 08/11/2012 8:24:02 AM PDT by EBH
U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.
The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.
Officials like Lehman Brothers former Chief Executive Dick Fuld have been criticized for having been too hesitant to take bold steps to solve their banks' problems during the financial crisis.
According to documents obtained by Reuters, the Federal Reserve and the U.S. Office of the Comptroller of the Currency first directed five banks - which also include Citigroup Inc,, Morgan Stanley and JPMorgan Chase & Co - to come up with these "recovery plans" in May 2010.
They told banks to consider drastic efforts to prevent failure in times of distress, including selling off businesses, finding other funding sources if regular borrowing markets shut them out, and reducing risk. The plans must be feasible to execute within three to six months, and banks were to "make no assumption of extraordinary support from the public sector," according to the documents.
Spokespeople for the five banks declined to comment. The Federal Reserve also declined to comment.
(Excerpt) Read more at reuters.com ...
Who's doing all the telling, and why are they telling these things?
-PJ
If they don't have your money - - and your money is safely converted to hard assets including gold, guns, ammo, and fertile land - - the banks do not control YOU.
“It couldn’t be Hussein being issued his walking papers and him pulling the plug, huh?”
October.
Surprise!!?
They own Washington DC and many states.
Thanks for the ping!
I just read that soros has sold huge amounts of bank stocks.
420,000 shares of citigroup
701,000 shares of JP Morgan
120,000 shares of Goldman Sachs
Somethings up.
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