-
U.S. banks told to make plans for preventing collapse
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 ... (full story)
frx_trader
929 posts
Gaaikema
372 posts
frx_trader
929 posts
Guest
IP XX.XX.25.34
There is no political will to bailout Banks again in Congress.
This article by Reuters is the regulators attempt to inform the Public that they are acting to prevent a recurrence of the "too big to fail policy" that culminated in the 2008 actions.
QE will be enacted only if the general economy fails.
The article goes into detail about the increase of core capital ratios to demonstrate that there are real assets in reserve to shore up Banks from internal resources. This way the Banks would keep risk limited to shareholders assets and not need public sector finances in an emergence.
That shareholders are the ones who will bear the brunt of losses as a Bank faces liquidation if it fails. That is the "Living Will" part disclosed.
Guest
IP XX.XX.32.21
Guest
IP XX.XXX.20.17
Top of Page