According to a release Wednesday from the Federal Deposit Insurance Corporation, five “too big to fail” banks failed to submit effective plans for a possible bankruptcy
The “living wills” — or plans of big banks to wind down operations in the event of bankruptcy — of JPMorgan, State Street, BNY Mellon, Bank of America, and Wells Fargo were found to be “deficient” by both the FDIC and the Federal Reserve.
Just the FDIC rejected Goldman Sachs plan, while the Fed alone found Morgan Stanley’s plan deficient.
Citigroup was the only of the eight “too big to fail” banks to have its plan approved by both regulators.
JPMorgan, State Street, BNY Mellon, Bank of America, and Wells were not immediately available for comment.
More to come…