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Banks Present Crisis Plan to the Fed: WSJ

June 24, 2013, 07:16 AM
Filed Under: Banking News

Reuters reported that U.S. banks have given a proposal to federal regulators on how to pay for restructuring the country's too-big-to-fail institutions in the event of a future crisis, the Wall Street Journal reported, citing people familiar with the conversations.

According to the Wall Street Journal report, the largest financial services holding companies would maintain a certain amount of debt and equity that would be used to prop up any failed bank subsidiary seized by regulators. Some banks might even be forced to issue expensive long-term debt, according to the newspaper.

Regulators have not yet responded to the bank's proposal and could reject it in favor of their own plan according to the WSJ report.

View the entire news story here.

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