CNN Money Reports 5 Big Banks Violating Dodd-Frank Rules
In an article written by David Goldman, CNN Money reported:
“Five major U.S. banks are in violation of Dodd-Frank rules that are meant to prevent “too big to fail” institutions from causing another financial crisis.”
The article stated that the Federal Reserve and the FDIC identified problems in the proposed plans designed for use by the bank in the event of a financial failure, for each of the following financial institutions:
- JPMorgan Chase
- Bank of America (BAC)
- Wells Fargo
- Bank of New York Mellon (BKPRC)
- and State Street (STT)
Sometimes described as “living wills,” these plans require banks with assets of $50 billion or more to outline a plan for a quick and orderly bankruptcy in the event the company goes under or it encounters severe financial distress. The requirement is one of the terms set in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into effect by President Obama in July 2010.
Other banks with living wills that are in question include Goldman Sachs (GS) and Morgan Stanley (MS); also Citigroup’s plan was approved, but was found to have some shortcomings that Citigroup will be required to address.
Read the full article: CNN Money Reports 5 Big Banks Violating Dodd Frank-Rules
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