Washington dec 19 (Reuters) – the U.S. banking regulators said on Tuesday that the United States eight big Banks to submit “lifetime” satisfying, but half of them plan to exist “shortcomings”, should be solved in the future.
The federal reserve and the federal deposit insurance corporation in the United States Banks, Goldman sachs, Morgan Stanley and Wells Fargo plans found some deficiencies, detailed instructions on how to break up safely in facing bankruptcy cases.
Regulators have found no problems with plans submitted by bank of New York Mellon, citigroup, jpmorgan chase or state street.
The solution, often called a survival will, requires large Banks to detail how regulators can unblock the financial system in bankruptcy cases. If Banks fail to get regulatory approval, they may face tougher restrictions and may even be required to divest.
Tuesday’s result was the country’s largest and most complex body of relatively clean health legislation. For the first time since 2014, neither the federal reserve nor the federal deposit insurance company have found any significant problems that warrant immediate action by Banks.
Regulators said the 2017 results showed “significant progress” in the banking sector in recent years.
There is no uniform concern among Banks with flawed plans. Regulator said, for instance, Goldman sachs and Banks need to be solved “stripping options separability analysis” related to the feasibility of related problems, while bank of America was told should re-examine its derivatives portfolio.
Regulators, said the next few years all Banks need to perfect its the four areas of focus include: liquidity within the group, the internal absorption capacity, derivatives and payment, clearing and settlement activity.
Most Banks have been asked to submit plans detailing how to break up the requirements safely in the wake of the doha – frank financial reform law in 2012.
In September, regulators announced that Banks would give Banks more time to express themselves as part of broader efforts to ease post-crisis rules. Banks were not required to submit new plans until July 1, 2019.
Banks believe that the annual cycle of submitting a living will may have thousands of pages, which is too onerous.
In a June report, the Treasury Department proposal to extend cycle until two years, must submit revised living wills the threshold of the Banks, and improve the guidance the transparency of regulatory plan to provide feedback to the bank.