WASHINGTON-The FDIC last week proposed that the largest banks provide them with a plan to wind down in case of insolvency, a so-called living will.
The proposal would apply to depository banks with more than $10 billion in assets that are part of a larger holding company with more than $100 billion in assets.
FDIC officials said their proposal would dovetail with a Congressional proposal requiring the largest financial firms to submit living wills. That bill is designed to reduce the impression that some firms are too big to fail. "It is a very real problem we saw in the crisis," FDIC Chairman Sheila Bair said about the "too big to fail" problem. The FDIC's proposal would not apply to large bank holding companies, just to the deposit-taking banking unit.
