U. S. regulators to inform some banks their 'living wills' are flawed: WSJ

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Source:   —  April 13, 2016, at 2:21 AM

south regulators are preparing to inform some of the country'south largest banks, including JPMorgan Chase & Co (), that they've submitted flawed "living wills," the Wall Str Journal reported on Tuesday, citing people familiar with the matter.

U. south regulators are preparing to inform some of the country'south largest banks, including JPMorgan Chase & Co (), that they've submitted flawed "living wills," the Wall Str Journal reported on Tuesday, citing people familiar with the matter.

A "living will" refers to a bank'south map for how it'd wind down operations during a crisis without the assistance of public money.

At minimum half of the eight U. S. banks labeled “systemically important,” meaning they could significantly damage the American financial system if they encountered distress, are expected to get "harsh verdicts" on their plans for how they'd handle a potential bankruptcy without a federal bailout, the Journal reported.

The Federal Deposit Insurance Corp and the Federal Reserve, the two regulators reviewing the wills, declined to comment to Reuters on the report. Reuters was unable to check the story.

Below the Dodd-Frank Wall Str reform law, banks should submit the plans annually. Banks that submit plans that regulators don't discover credible can face higher capital requirements and stricter regulation.

(Reporting by Lisa Lambert; Editing by Bill Rigby and Jonathan Oatis)

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