Big banks craft "living wills" in case they fail [General] - MarketTicker Forums


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User Info	Big banks craft "living wills" in case they fail in forum [General]
Duc888 Posts: 7368 Incept: 2008-11-06 CT, the UNconstitution State	By David Henry and Dave Clarke NEW YORK/WASHINGTON (Reuters) - Five of the biggest banks in the United States are putting finishing touches on plans for going out of business as part of government-mandated contingency planning that could push them to untangle their complex operations. Quote: The plans, known as living wills, are due to regulators no later than July 1 under provisions of the Dodd-Frank financial reform law designed to end too-big-to-fail bailouts by the government. The living wills could be as long as 4,000 pages. Since the law allows regulators to go so far as to order a bank to divest subsidiaries if it cannot plan an orderly resolution in bankruptcy, the deadline is pushing even healthy institutions to start a multi-year process to untangle their complex global operations, according to industry consultants. http://finance.yahoo.com/news/big-banks-.... ---------- ...burp 2012-06-29 00:00:11 Permalink
Asimov Posts: 104672 Incept: 2007-08-26 East Tennessee Eastern Time Online	Wasn't there something like this announced several years ago? Or maybe that was just the beginning of the process. ---------- It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente. 2012-06-29 00:20:57 Permalink
Erictheoracle Posts: 308 Incept: 2008-10-17 Minnesota	....And then after we blow up and world realizes that its left holding the bag, everybody sets their hair on fire. The end. 2012-06-29 02:26:41 Permalink
Colk55 Posts: 2451 Incept: 2010-02-11 Indiana	Asi, last year was the first I saw the living will thing mentioned. http://tickerforum.org/cgi-ticker/akcs-w.... ---------- The politician's motto: If you can't dazzle them with brilliance, baffle them with bull***. Last modified: 2012-06-29 04:18:30 by colk55 2012-06-29 04:18:16 Permalink*
Poid Posts: 610 Incept: 2010-03-08	The living will concept came up just after the financial crisis hit, but its a very complex area. It can involve completely changing the legal structure of a group and business unit composition to achieve the ability to break up in the event of failure. So its taking ages to get there. IMO it doesnt change the political incentives for bailouts though. 2012-06-29 07:20:36 Permalink
Argos Posts: 6446 Incept: 2008-03-23 The Green Mountain State Online	On the JPM front: http://tickerforum.org/cgi-ticker/akcs-w.... 2012-06-29 07:28:52 Permalink
Argos Posts: 6446 Incept: 2008-03-23 The Green Mountain State Online	Updated living wills are scheduled to be submitted this summer. Here's a new development: http://www.ft.com/cms/s/a17d0e9a-688c-11.... Partial quote: Quote: US regulators have warned banks not to assume that countries will work together to avoid the catastrophic failure of a financial group. 2013-01-28 22:08:21 Permalink