Per Dodd-Frank legislation intended to prevent future TBTF bailouts, the FDIC will begin requiring TBTF banks to write their own "living wills", essentially liquidation plans.
This would be rather humorous if it wasn't the taxpayer that always funds the bailouts.
Who are they kidding? If The Morgue, The Squid, Citi, MS, BOA, or any other TBTF bankster group is facing imminent bankruptcy, the can will be kicked down the road again as far as possible, and as often as needed. (unless an enemy of the cartel, in which case they will be liquidated to JPMorgan for pennies on the Trillion)
QE TO INFINITY.....AND BEYOND!!!!
Big US Banks to Be Required to Write ‘Living Wills’ Published: Tuesday, 13 Sep 2011 | 10:47 AM ET
By: Eamon Javers
CNBC Washington, DC Correspondent
The nation’s biggest banks are getting a new homework assignment from Uncle Sam today.
The FDIC was set Tuesday morning to pass new rules requiring insured depository institutions with $50 billion or more in total assets to submit “living wills” describing how the institution would be wound down in an orderly fashion in the event of a crisis.The new rules were a key part of the Dodd-Frank Wall Street reform legislation passed by Congress in 2010, and are meant to fix a gap regulators saw in the financial system in the 2008 crisis: the public didn’t know what the impact of bank failures would be on the entire financial system, and the banks weren’t prepared to deal with their own failures.
The FDIC proposed a deadline of July 1 2012 for all institutions with $250 billion or more in non-bank assets to file their first plans with the government. Those with between $100 and $250 billion would have until July 1, 2013 to file, and all the rest would be expected to file by Dec. 31, 2013.
FDIC officials briefing reporters on Tuesday morning emphasized that there will be two components to each institution’s living will — public and a private.
The public plan will be a guide for investors about how the institution could be wound down in an orderly fashion, and the confidential piece would be a report to regulators that would include trade secrets and details such as exposure to counterparties and other sensitive information decision makers would need in a crisis.