US regulators warn banks on living wills

Article source
Financial Times

US regulators have warned banks not to assume that countries will work together to avoid the catastrophic failure of a financial group. The alert to the world’s biggest international financial institutions followed growing concerns about the progress of global regulatory reform efforts.

The guidance to banks preparing “living wills” to ensure a more orderly wind-down in a future Lehman Brothers scenario came as the Financial Stability Board, a group of central bankers and regulators, prepares to meet on Monday to discuss the resolution regime.

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Click here to read about the Bretton Woods Committee's July 2012 Regulatory and Systemic Risk Roundtable, including commentaries by Barbara Rehm, Michael Helfer, and Mary Miller.