Daily News: June 26, 2013

Bloomberg: Big Banks’ Wind-Down Plans Fail to Cut Risks

Bloomberg reported that more regulators are saying that the biggest banks still have yet to provide adequate wind-down bankruptcy plans and may be subject to restructuring to reduce the risk the banks pose on the financial system.

The article noted that FDIC official Jim Wigan, responsible for planning the failures of such big banks as JPMorgan, Goldman and Citigroup, said these banks have not been able to draw a bankruptcy plan that would not threaten the financial system. Bloomberg said the 2010 Dodd-Frank Act gave regulators the authority to require risky banks “to restructure if their plans aren’t ‘credible.’”

To read the entire Bloomberg story, click here.