Some of the country's biggest banks are about to have their 'living wills' rejected
Thomson ReutersA view of the exterior of the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York
U.S regulators are preparing to notify some of country's largest banks, including JPMorgan Chase & Co , that they have submitted flawed "living wills," the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
A "living will" refers to a bank's plan for how it would wind down operations during a crisis without the help of public money.
At least half of the eight U.S. banks labeled “systemically important,” meaning they could significantly damage the financial system if they encountered distress, are expected to receive "harsh verdicts" on their plans for how they would handle a potential bankruptcy without a federal bailout, the Journal reported.
(Reporting by Lisa Lambert; Editing by Bill Rigby)
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