(Reuters) - 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.

http://finance.yahoo.com/news/exclusive-....

It somehow took Reuters 2 years to find a story we already knew

Quote:

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...

Bankers responded by detailing plans they have made to kiss their own asses goodbye before the FSA puts them in their soup pots, cooks them and then eats them.

Right, Rvacha, this is a weird one. For whatever reason, Reuters felt it necessary today to, not only revitalize this story, but have it presented as though it's a fresh "exclusive." The same reporters here, Rick Rothacker and David Henry, co-reported for a June article from Reuters on the same subject. Today's article does indicate that Reuters has obtained documents, which I take it is indeed a new development, but it certainly seems as though Reuters is up to something here. Blowing their own horn? Providing Wall Street cover for Goldman-SEC-DoJ public fallout? Don't know for sure . . .

Quote:

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.

More like showing how much the banks have the government by the balls.

Why lose money prevent failure when you can use it as a blackmail the entire nation?