The nine largest U.S. banks have submitted their “living wills” to federal banking regulators, as required by Dodd-Frank Act for banks with more than $250 BILLION of assets.
The legislation was enacted following the financial crisis of 2008 when the federal government faced the possibility/realization that many large banking institutions were “too big to fail”.
The documents spell out how the banks could be wound down if they were to become insolvent.
I am wondering: Is it time require these banks to break up their massive organizations so they are no longer “too big to fail”?
Spinning off various banks’ operations into separate companies that could be better-managed would likely benefit shareholders and reduce the risk of future taxpayer-funded bailouts.
Source: HousingWire.com article
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