US banks not prepared for another financial crisis, say federal regulators

We also shouldn’t forget that the FDIC is helpless and broke itself, which compounds the problem and shows a double standard on their part. They FDIC will ironically be the one raiding the banks during the next crisis but like to heap burden on them because passing blame is the game today.

 

Five out of eight of the biggest US banks do not have credible plans for winding down operations during a crisis without the help of public money, federal regulators said on Wednesday. Photograph: Mike Blake/Reuters

 

Some of the US’s biggest banks still lack a proper plan for bankruptcy, in the event of another major financial crisis, US regulators said on Wednesday.

In the wake of the great recession banks were required to come up with “living wills” to prove they had a credible plan for bankruptcy that would not require another bailout from the taxpayers.