Wall Street Banks’ Success in ‘Living Wills’ Marks Turning Point
- All eight of the most complex U.S. banks cleared by regulators
- Four lenders asked to fix shortcomings in resolution plans
Photographer: Scott Eells/Bloomberg
This article is for subscribers only.
The biggest U.S. banks all got passing grades from regulators in the latest round of their so-called living wills, showing Wall Street’s increased comfort with a once dreaded test that shows how lenders can be safely taken down after a collapse.
While submissions from Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley and Wells Fargo & Co. were all deemed adequate, the Federal Reserve and Federal Deposit Insurance Corp. did say they found “shortcomings” in those companies’ strategies, according to a Tuesday statement. No shortcomings were found in living wills from JPMorgan Chase & Co., Citigroup Inc., Bank of New York Mellon Corp. and State Street Corp.