Posted on 04/14/2016 6:42:10 PM PDT by Lorianne
Some of the US’s biggest banks still lack a proper plan for bankruptcy, in the event of another major financial crisis, US regulators said on Wednesday.
In the wake of the great recession banks were required to come up with “living wills” to prove they had a credible plan for bankruptcy that would not require another bailout from the taxpayers.
But after reviewing the plans of five institutions – JP Morgan Chase, Wells Fargo, Bank of America, Bank of New York Mellon and State Street Corp – the Federal Reserve and the Federal Deposit Insurance Corp (FDIC) have determined that the banks have yet to meet that requirement.
“The goal to end too big to fail and protect the American taxpayers by ending bailouts remains just that: only a goal,” said Thomas Hoenig, FDIC vice-chairman.
The banks are to submit revised proposals by 1 October.
According to feedback from the regulators, one of the main concerns with JP Morgan’s proposal was the bank’s liquidity in a time of need. Regulators were concerned the bank would not be able to shift money around to fund some of its operation during a time of stress or bankruptcy.
“Obviously we were disappointed,” said Marianne Lake, JP Morgan’s chief financial officer. “The most important thing is that we work with our regulators to understand their feedback in more detail.”
Bank of America also needs better processes for estimating its liquidity needs, the regulators said. And while Wells Fargo was deemed to have “firm-wide, high-quality liquid assets”, regulators raised concerns over “quality control, senior management oversight, and recovery and resolutions planning staffing”.
In its statement, Wells Fargo said it was disappointed its plan was “determined to have deficiencies” but the feedback was “constructive and valuable to our resolution planning process”.
(Excerpt) Read more at theguardian.com ...
Were they “prepared” last time? Obonzo and Clinton will bail them out.
All those multi bailout billions they got in 2009 was not enough for them, eh?
I’m shocked! SHOCKED I tell you!
No, Obozo wants them to fail, wants America whose power is derived largely by the purse to fail, wants to destroy the nation for his NWO handlers. This is all by design. Soros and his highly paid socialist economy destruction theorists have already figured out how Americ's economy ticks and designed an outline on how to take it down. Obozo is just following the script laid out by Soros for a very big payday at the end of his reign when he walks away from his throne with America burning to the ground while Nero fiddles.
What’s the point of preparing. They’re too big to fail and will get bailed out.
That’s a shame, because obama is doing his level best to ruin the economy.
Therefore we will have one - look for the October surprise!
what did they do with all of the bail out money and all of the interest free use of our monies in their charge and all of the “printed” QE money from govt since then and they still don’t have enough...CS’s need to go to jail and be hung by their necks and / or balls at dawn!!!!!!!!!!!!!! I MEAN IT>>>HAVE HAD ENOUGH! ANF YOU? IT IS TIME!
Reconstitute Glass-Stegall and then break up the mega banks into regional entities.
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