June 29 (Bloomberg) -- Summaries of company-written plans for unwinding the nine largest systemically important banks operating in the U.S. will be made available to the public July 3, Federal Deposit Insurance Corp. officials said today.
JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley, Barclays PLC, Deutsche Bank AG, Credit Suisse Group AG and UBS AG are required to file the so-called living wills to the FDIC and the Federal Reserve by July 2, FDIC officials said on a conference call today. Each bank also must produce a public summary, and the information in those sections will likely contain data from existing public sources, with proprietary information reserved for the regulators, said the officials who disclosed the information under terms that required they not be identified.
Lenders with more than $250 billion in nonbank assets will be the first group of banks to deliver the liquidation plans, expected to run into thousands of pages. The plans, mandated by the Dodd-Frank Act, are meant to give regulators a way to shutter complex financial firms without taxpayer bailouts or the market turmoil that followed the 2008 bankruptcy of Lehman Brothers Holdings Inc.
By the end of 2013, a total 125 banks are required to deliver plans for taking their companies into bankruptcy, FDIC officials said. The regulators are responsible for determining whether each living will represents a credible path to a rapid and orderly closure that doesn’t threaten the financial system.
The regulators will have 60 days from submission of the plans to request more information from the companies if the plans aren’t considered complete.
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