U.S. and U.K. Plan Banking ‘War Game’ to Test Crisis Defenses
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Regulators in the U.S. and U.K. will carry out their first so-called war game to simulate the failure of a major cross-border bank as they test their defenses against the type of crisis that crippled the financial system in 2008.
The exercise, involving Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney, will take place on Oct. 13 in Washington and is aimed at testing the global framework on bank resolution to ensure that no lender is too big to fail, according to the U.K. finance ministry. U.S. Treasury Secretary Jack Lew, Deputy Secretary Sarah Bloom Raskin and British Chancellor of the Exchequer George Osborne will also take part.