Living will
BankingDefinition
Required submission by major banks to the Fed and FDIC describing how they would be wound down in the event of failure WITHOUT government bailout. Required by Dodd-Frank Title I.
Multiple submissions have been deemed inadequate. Ostensible goal: ensure failed banks can be resolved without contagion. Unclear how well the plans would actually work in real crises.
Multiple submissions have been deemed inadequate. Ostensible goal: ensure failed banks can be resolved without contagion. Unclear how well the plans would actually work in real crises.