Regulator to big banks: Rescue yourselves next time
The largest U.S. banks will soon have to take the additional step of showing regulators how they can keep from failing in the first place, Bloomberg Business reported. The Office of the Comptroller of the Currency, which is responsible for maintaining the safety and soundness of national banks, is planning to propose a requirement that lenders with more than $50 billion in assets provide blueprints for how they’ll withstand a crisis and maintain their businesses. It’s a big undertaking for bank compliance staffs and the first time many of the largest regional firms would have to submit formal survival strategies.