A top Federal Deposit Insurance Corp. official said late Tuesday that the initial phase of large firms preparing wind down plans has been a "positive first step."
Under Dodd-Frank Act rules meant to make failures more manageable, 11 of the largest firms have given the FDIC and Federal Reserve Board their first living wills.
"The long reports include minute details about company structure and wind-down strategies. Although regulators have cited a definite learning curve in the development and handling of the wills, especially for the first drafts, they are authorized to force structural changes if a company's report is ultimately deemed subpar," writes American Banker's Joe Adler.
"We received large amounts of information that can probably be improved on in the second round. But that being said, the robustness of the exercise clearly was evident in their submissions," Wigand said. "From that perspective, I think, we can take that as a positive first step. But that's what it is: a first step."
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