Five of the biggest banks in the United States are putting
finishing touches on plans for going out of business as part of
government-mandated contingency planning that could push them to untangle their
complex operations, Reuters reports.
The plans, known as living wills, are due to regulators no
later than July 1 under provisions of the Dodd-Frank financial reform law
designed to end too-big-to-fail bailouts by the government. The living wills
could be as long as 4,000 pages.
Since the law allows regulators to go so far as to order a
bank to divest subsidiaries if it cannot plan an orderly resolution in
bankruptcy, the deadline is pushing even healthy institutions to start a
multi-year process to untangle their complex global operations, according to
industry consultants..
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