Marcy Gordon
Associated Press
via HamptonRoads.com
9/13/2011
WASHINGTON (AP) — The largest U.S. banks will be required to show regulators how they would break up and sell off their assets if they are in danger of failing.
The Federal Deposit Insurance Corp. voted 3-0 Tuesday to approve the rules, which were mandated under the financial overhaul passed by Congress last year. They are designed to reduce the chances of another government bailout of Wall Street banks in the event of another financial crisis.
The rules require banks with $50 billion or more in assets to submit so-called living wills to the FDIC, the Federal Reserve and the Financial Stability Oversight Council and send revised plans annually.
Among the banks affected are Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co.
The biggest banks of the group would have to start filing their plans next July. The others wouldn’t be due until 2013…
The article continues at the HamptonRoads.com.
Update: The carnage at Bank of America: What did Warren Buffett know and when did he know it?
…The Bank of America announcement comes less than three weeks after the Oracle’s much-ballyhooed investment in that beleaguered institution. So here is my question: Did Warren Buffett invest in Bank of America because he knew these dramatic cuts were in the offing when other investors didn’t, or did Buffett push Bank of America to slash the staff after he put his money in? Because it is pretty impossible to believe that this decision is wholly independent of Buffett’s involvement…
