FDICs Living Will Bid Unappealing To NCUA
ALEXANDRIA, Va. – NCUA said it is not interested in a proposal issued for public comment by the FDIC that would require the biggest banks to provide regulators a plan for winding down in case of failure – a so-called Living Will.
The FDIC’s proposal would apply to about 40 banks with more than $10 billion in assets that are part of a larger holding company with more than $100 billion in assets.
The measure is meant to complement to reforms being considered in Congress that would require the largest financial firms to submit living wills. That reform 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.
FDIC’s proposal would not apply to large bank holding companies, just to the deposit-taking banking unit.
An NCUA spokesman said the credit union regulator, which often follows the lead of banking agencies, is not currently exploring its own Living Will proposal.