The first group (9) of large banks have submitted their so-called living wills to the Fed and...


The first group (9) of large banks have submitted their so-called living wills to the Fed and they've been made available to the public. Required by Dodd-Frank, the documents are supposed to lay out how the giants could be wound down in bankruptcy in event of material financial distress or company failure.
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Comments (13)
  • TWagen
    , contributor
    Comments (164) | Send Message
     
    Why or how would anyone ensure that they are accurate or work ? Certainly not leadership as they will be gone if these are triggered. More meaningless paperwork to update forever.

     

    Certainly no guarantee or insurance for the future !
    3 Jul 2012, 02:17 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Better than nothing.

     

    Because when problems appear and there is a plan, clients are not going to start a bank run right away, and that's important.
    4 Jul 2012, 12:09 AM Reply Like
  • MexCom
    , contributor
    Comments (3069) | Send Message
     
    Reading the BAC link - it is incomplete. SA should do a better job of linking to full documents being referenced or at a minimum check it out for completeness before putting it forward as a reliable source or to provide a time line when it would be available.
    3 Jul 2012, 02:37 PM Reply Like
  • dsorchestra90
    , contributor
    Comments (250) | Send Message
     
    Here is an article with all of them included... They are all bs though so not rly worth your time I read thru a few alrdy.

     

    Enjoy

     

    http://bit.ly/MtAYVB
    3 Jul 2012, 02:58 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (562) | Send Message
     
    ?

     

    The link is straight from the Federal Reserve and the BAC pdf looks fine to me.
    3 Jul 2012, 03:10 PM Reply Like
  • TwistTie
    , contributor
    Comments (2429) | Send Message
     
    How do you get a dead elephant into a refrigerator?

     

    1. Open the refrigerator door.
    2. Insert the elephant into the refrigerator.
    3. Close the refrigerator door.
    3 Jul 2012, 02:56 PM Reply Like
  • msphar
    , contributor
    Comments (182) | Send Message
     
    I read the Fed site document. It seemed reasonable as far as it went but was certainly sanitized for public consumption. As it well should be. Bottom line these are strong and powerful statements of the overall companies operations and another chance to market this information to the people that truly hate the "too large and evil" corporations. I think the stock will respond well to this release.
    3 Jul 2012, 02:57 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2862) | Send Message
     
    Who are they kidding, all these plans should just say TARP 2020.
    3 Jul 2012, 02:59 PM Reply Like
  • SoldHigh
    , contributor
    Comments (991) | Send Message
     
    And when the time comes, how will they REALLY be "wound down?"

     

    "Bailout"
    3 Jul 2012, 03:48 PM Reply Like
  • alexoscarew
    , contributor
    Comments (2) | Send Message
     
    I translate the Fed position papers. It seemed tenable as far as it went but was certainly sanitized for semipublic t.b.. As it asymptomatic should be. Nethermost pipe these are strengthened and effectual statements of the overall companies operations and other possibility to activity this message to the grouping that genuinely emotion the "too comprehensive and flagitious" corporations. I opine the inventory instrument act asymptomatic
    4 Jul 2012, 03:44 AM Reply Like
  • RALPHSCHAUSS
    , contributor
    Comments (82) | Send Message
     
    Another nail in the coffin of banks profitability!
    more walls of paper !
    more needs of staffing up on regulator staff !
    but at what cost to the economy and the taxpayer ??
    but regulators don't need to think of expenses -
    another bureaucratic
    overkill by the regulators in the US at the behest of DC politics
    we had all the necessary regulations but there was NO EXECUTION !
    all men asleep at the wheel of SEC, OCC, FED and CFTC,Fed Home Loan , I guess
    I recommend listening to Richard Bove at Rochedale Secs - he got the right incisive view on the banking industry

     

    Frankfurt ,Germany
    4 Jul 2012, 11:50 AM Reply Like
  • Dead Rabbits
    , contributor
    Comments (14) | Send Message
     
    So I had a quick look at the Goldman Summary RP. It consists of 30 odd pages of explanation of what a resolution plan is, affirmation of the importance of having a plan, and description of the process GS used in developing its plan. The only thing even vaguely resembling an actual resolution plan so far as I can see is the following, which was burried away on the last two pages:

     

    "Our Material Entities will be subject to various bankruptcy proceedings in the jurisdictions in which they are domiciled.
    These proceedings will include: FDIC receivership for our U.S. bank; SIPA liquidation for our U.S. broker-dealers; relevant
    broker-dealer resolution regimes in the U.K. and Japan; and various other bankruptcy proceedings for our other Material
    Entities

     

    Our Material Entities will be subject to various bankruptcy proceedings in the jurisdictions in which they are domiciled.
    These proceedings will include: FDIC receivership for our U.S. bank; SIPA liquidation for our U.S. broker-dealers; relevant
    broker-dealer resolution regimes in the U.K. and Japan; and various other bankruptcy proceedings for our other Material
    Entities

     

    If it proves impossible to sell GS Group businesses and assets then it would be possible to liquidate a substantial majority of
    GS Group’s assets. This strategy would likely take more time than sales of the businesses and assets of the Material Entities
    and would likely not achieve maximum recovery for stakeholders as franchise value would likely erode quickly

     

    We believe the potential purchasers for the businesses or assets of our Material Entities and for other non-Resolution
    Business Core Lines of Goldman Sachs could include global financial institutions, private equity funds, insurance companies
    or sovereign wealth funds"

     

    Whew! Glad we got that done. Now Regulators will know exactly what to do in the event of a "material financial distress or failure" at GS. They'll have our backs next time!
    4 Jul 2012, 02:01 PM Reply Like
  • billbailoutbill
    , contributor
    Comments (3) | Send Message
     
    We need accountability that insure these plans will work. How about a death penalty in the event of the bank's failure and the plan doesn't work. Include all senior staff and the board.
    5 Jul 2012, 12:37 AM Reply Like
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