Morning Agenda: The Financial Crisis, Living Wills and Lawsuits
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A branch of Wells Fargo bank in Los Angeles. CreditFrederic J. Brown/Agence France-Presse — Getty Images
Wells Fargo is, once again, in a sticky spot with regulators.
For the second time this year, the bank failed a key regulatory test that was created after the 2008 financial crisis to reduce the threats posed by large banks to the economy.
It was required to submit a plan, in case it collapsed, to unwind itself in a way that would safeguard the economy. The submissions by Wells Fargo and four other banks were rejected in April.
This time around, Wells Fargo was the only bank whose so-called living will did not pass muster. As a result, it will be prohibited from establishing new international units or acquiring a subsidiary that is not a bank…
Morning Agenda: The Financial Crisis, Living Wills and Lawsuits
