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  • U.S. banks told to make plans for preventing collapse

    From reuters.com

    Read Full Story at reuters.com

    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)

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    • Aug 10, 2012 3:47am
    • #1
    • Quote
    • frx_trader

      929 posts

    • QE3?
    • Aug 10, 2012 4:07am
    • #2
    • Quote
    • Gaaikema

      Gaaikema's Avatar

      372 posts

    • Quoting frx_trader
      QE3?
      In nov/dec
    • Aug 10, 2012 4:19am
    • #3
    • Quote
    • frx_trader

      929 posts

    • Quoting Gaaikema
      In nov/dec
      After election, not anytime soon. "if they faced serious problems, emphasizing that the banks could not count on government help. "
    • Aug 10, 2012 4:56am
    • #4
    • Quote
    • Guest

      IP XX.XX.25.34

    • The US government is distancing itself from Banks.
      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.
    • Aug 10, 2012 5:48am
    • #5
    • Quote
    • Guest

      IP XX.XX.32.21

    • Good God. People act like QE is the end all be of solution that will cure the world of all that ails. I even heard its going to heal crippled children and end cancer. Long live qe!!!
    • Guest

      IP XX.XXX.20.17

    • Change Code
      Enter the characters found on the security image. To skip verification in the future, register to become a member.

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  • Story Stats
  • Posted: Aug 10, 2012 3:31am

    Submitted by: FF News

    Category: Fundamental Analysis

  • 2,013 Views

  • 5 Comments

    frx_trader(2), Gaaikema, Guest, Guest

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