Will Global Regulators Be Ready for the Next Crisis?
Posted at 10:15 a.m. on Jan. 28
“US regulators have warned banks not to assume that countries will work together to avoid the catastrophic failure of a financial group,” according to the Financial Times.
“New versions of the living wills, or resolution plans, are due to be filed in the summer. The Federal Reserve and Federal Deposit Insurance Corporation have told banks that they should not do as many did in the first round last year and count on regulators to co-operate.”
“Several bank executives told the Financial Times that the guidance – which one called ‘shocking’ – left them believing regulators were losing confidence in their ability to improve on 2008 when countries either failed to co-operate, or even fought over assets.”