Five of our eight of the biggest banks in the United States do not, according to federal regulators, have credible plans for winding down operations during a financial crisis without the help of taxpayer money. All this after the infamous collapse of Bear Stearns and Lehman Bros. and near collapse of giants like AIG. The institutions could face stricter oversight, reports Lisa Lambert, if they do not fix their plans, also known as “living wills.”
The Federal Reserve and Federal Deposit Insurance Corporation jointly agreed these living wills were not credible from five of the top banks in the U.S.: Bank of America, Bank of New York Mellon, J.P. Morgan Chase, State Street, and Wells Fargo.
Those names sound familiar? -DB