JPM - JPMorgan Others Living Will Plan Chided by Regulators | Benzinga
U.S. banking regulators have detected flaws in strategies that JPMorgan Chase (NYSE: JPM), Citigroup (NYSE: C), Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS) submitted. These outline the companies' plans for winding down in the event of a catastrophic event.
The Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) stated that they had observed shortcomings in the ‘living wills' of these four lenders. Per agencies, a shortcoming is a weakness that raises doubts about the plan's feasibility.
The Dodd-Frank legislation passed in 2010 mandated that banks of a certain size create these plans regularly, outlining how they could be wound down in the event of a crisis without endangering the larger financial system. This mandate was part of steps taken in the wake of ...