The Federal Reserve Board and Federal Deposit Insurance Corp. are set to give at least four megabanks a "harsh verdict" on their living wills, including JPMorgan Chase, according to an
The paper said the results of the living wills, which it said are "not yet final and could change," are due out this week for the eight biggest and most complex U.S. banks. Two other banks that were said to have flunked their living wills are: Bank of New York Mellon and State Street, the paper said. Citigroup is expected to receive a positive review, according to the article.
If banks receive failing grades, they start a regulatory clock to improve their living wills within a year or face possible asset divestures and other steps mandated by regulators.
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WASHINGTON The Federal Reserve Board and the Federal Deposit Insurance Corp. should rethink the review process for big banks' resolution plans, the Government Accountability Office said in a report released Tuesday.
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Regulators have yet to provide feedback on last year's living-will resolution plans, but for foreign banks with significant operations in the U.S., those assessments are too late. Such institutions are required to put in place an entirely different business model by July of this year.
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The FDIC found flaws with the living wills of several big banks last year, but the Fed declined to start the regulatory clock for fixes, saying the process was still too new. Regulators have not yet provided feedback to the firms involved, but that is expected soon.
A spokesman for JPMorgan declined to comment on the article.
