Daily Archives: July 7, 2015

Big U.S. Banks Refile ‘Living Wills’ After Regulatory Rebuke — Update

Twelve of the largest U.S. banks are trying yet again to persuade regulators they can safely navigate bankruptcy without tanking the broader financial system.

Summaries of “living wills” from firms including J.P. Morgan Chase & Co. and Goldman Sachs Group, Inc. were published Monday on the websites of the Federal Reserve and the Federal Deposit Insurance Corp. The stakes are high: If the plans don’t please regulators, firms could be forced to break up or shrink.

Among the new details: Banks have rethought how they would run a bankruptcy process, emerging significantly smaller than their current size or, in the case of Goldman Sachs and Morgan Stanley, ceasing to exist after selling themselves off in pieces.

Read on.