U.S. banks told to make plans for preventing collapse
Regulators asked five big banks to make 'recovery plans'
click on the link above to read the full article, this is just a copy of the first 4 paragraphs
7:05 a.m. CDT, August 10, 2012
U.S. regulators directed five of the country's biggest banks, including Bank of America Corp. and Goldman Sachs Group Inc., to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.
The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.
Officials like Lehman Brothers former Chief Executive Dick Fuld have been criticized for having been too hesitant to take bold steps to solve their banks' problems during the financial crisis.
According to documents obtained by Reuters, the Federal Reserve and the U.S. Office of the Comptroller of the Currency first directed five banks -- which also include Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. -- to come up with these "recovery plans" in May 2010.
Last edited by nomed44; 08-13-2012 at 00:24.
stocks are going to crash really soon. But first they must go a little bit higher so all the countries who don't like us can sell shares at the same time and make tons of monies.
its all been planned to crash. prepare for WW3 this is the only solution to creating jobs!
I've seen that being spun on a couple different sites as a scary deal. This is a good thing. It should be a lot more of a burden on a bank or corporation to reach "too big to fail" status and if they do reach that status they should be required to have plans in place to allow them to split up and dissolve as gracefully as possible.
Or maybe, just maybe, there shouldn't be a "too big to fail" status.
Originally Posted by upgraydd
Some ppl liked getting fucked in the ass though.
Last edited by Damedius; 08-13-2012 at 01:23.
Gold standard, free markets, regulations, tax whatever knocks these damn banks down i dont care at this point. The industry just needs to take a major financial haircut.
Last edited by Wufiavelli; 08-13-2012 at 17:51.
huh, Alex Jones was warning about that.
Interesting timing that I see your post and his video on it heh.
Just because I have car insurance doesn't mean I expect to get in an accident. It is just better to plan ahead. I find this mildly encouraging because the government has done something smart for a change.
This. But it's too little too late. The current situation is not fixable without a huge war.
Originally Posted by Falokis