October 3, 2013 / 2:00 PM / 6 years ago

U.S. regulators release biggest banks' second set of 'living wills'

A sign outside the headquarters of JP Morgan Chase & Co in New York, September 19, 2013. REUTERS/Mike Segar

WASHINGTON (Reuters) - U.S. bank regulators on Thursday released portions of the biggest banks’ updated “living wills,” or blueprints for how they could be wound down in a crisis.

The resolution plans are a key component of regulators’ efforts to crack down on Wall Street after the 2007-2009 financial crisis. The 2010 Dodd-Frank law called for banks to spell out how they could be taken apart as a way to prevent future costly taxpayer bailouts.

The Federal Reserve and Federal Deposit Insurance Corp said 11 of the biggest banks operating in the United States first filed their resolution plans in 2012 and were required to submit updated versions by October 1.

That group of banks with $250 billion or more in nonbank assets in the United States included Bank of America Corp, JPMorgan Chase & Co, Deutsche Bank AG and Barclays Plc.

Under the rules, banks turn in both a public portion, which is posted on the Fed’s and FDIC’s websites, and a confidential section that regulators scrutinize.

After finding some gaps in the planning last year, regulators asked banks to include more detailed information this time about potential obstacles to bankruptcy.

They asked banks to consider how their funding and liquidity, global cooperation and interconnectedness could affect regulators’ ability to unwind them during a financial crisis.

A second group of banks, including Wells Fargo & Co and HSBC Holdings Plc, filed their first living wills in July.

The final group, banks with more than $50 billion but less than $100 billion in total U.S. assets, must turn plans in by the end of the year, regulators said.

Reporting by Emily Stephenson; Editing by Lisa Von Ahn

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