US regulators rejected on Wednesday the bankruptcy contingency plans of five giant US banks that aim to avoid taxpayer bailouts if they fail. Both the Federal Reserve and the Federal Deposit Insurance Corporation said the ‘living will’ plans were ‘not credible’ for Bank of America, Bank of New York Mellon, JPMorgan Chase, State Street and Wells Fargo.
The five ‘too big to fail’ banks were given until October 1 to improve the plans, which were required in the Dodd-Frank regulations governing systemically important banks in the wake of the devastating 2008 financial crisis.