Morning Agenda: Five Banks Seen as Too Big to FailBy
FIVE BANKS SEEN AS TOO BIG TO FAIL | Nearly eight years after the financial crisis, five of the largest American banks are still seen as too big to fail, Nathaniel Popper and Peter Eavis write in DealBook. The Federal Reserve and the Federal Deposit Insurance Corporation determined that JPMorgan Chase, Bank of America, Wells Fargo, State Street and Bank of New York Mellon submitted plans for insolvency, also known as living wills, that were “not credible or would not facilitate an orderly resolution under the U.S. Bankruptcy Code.” Goldman Sachs and Morgan Stanley received passing grades from only one of the two agencies.
The results are “a particular blow for JPMorgan because it often boasts about the strength of its operations and its ability to weather any crisis,” Mr. Popper and Mr. Eavis write. Last week, Jamie Dimon, the chief executive, said in his annual letter that the bank “had enough loss-absorbing resources to bear all the losses” of the 31 largest banks in the country. The Fed and F.D.I.C. said that JPMorgan appeared to be unprepared for a crisis in a number of areas, for example, lacking adequate plans to move money from its operations overseas if something went wrong in the markets…
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