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The Fed and the Office of the Comptroller of the Currency have directed five leading banks to...

The Fed and the Office of the Comptroller of the Currency have directed five leading banks to formulate recovery plans for preventing collapse in the event of severe financial stress and even general instability, Reuters reports. The plans are different to those for living wills, with requests first sent two years ago to Citigroup (C), Morgan Stanley (MS), JPMorgan (JPM), BofA (BAC) and Goldman Sachs (GS).
Comments (3)
  • MexCom
    , contributor
    Comments (3050) | Send Message
     
    This is old news and no great "new" revelation. Reuters requested some additional documents from the Fed and they complied. Reuters is just mudslinging. No first person interviews with the bankers and using derogatory phrases such as receiving "multiple bailouts." In actuality it was BAC that was forced by Federal authorities to bail out Countrywide Financial and Merrill.
    10 Aug 2012, 05:40 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1558) | Send Message
     
    Great point. I always did wonder how the Fed forced BAC to do this though...was it more of a political move where "you better do this or we won't be on good terms" ?
    10 Aug 2012, 09:04 AM Reply Like
  • RALPHSCHAUSS
    , contributor
    Comments (58) | Send Message
     
    I totally agree with MexCom. BofA was forced to bail out, at the expense of its small shareholders in 2007 and 2008, bankrupt C-wide and Merrill L which would otherwise have disappeared just like Lehman Brothers. It would have been cheaper to buy the Chernobyl power plant in the Ukraine.

     

    Further there is an onslaught of regulatory overkill in the US and in the US, you do this not with one but five different regulators - all with their different agendas. A mountain of paperwork is coming down the turnpike killing profitability but great for job creation of lawyers , regulators, auditors and state DA's (see NYC) and their staff .. All this is non-productive work of no ecnomic or social benefit.
    All this is very depressing for the competitiveness of US financial industries and it will dearly cost the US economy !
    10 Aug 2012, 06:25 AM Reply Like
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