FDIC Proposes To Make Banks Draw Up Living Wills

Law360, New York (May 13, 2010, 3:27 PM EDT) -- The Federal Deposit Insurance Corp. is considering requiring banks to draw up contingency plans for how individual depositary units can be spun off from the parent firm and wound down in a tidy manner in the event of a collapse.

The new proposed rule, which the FDIC issued Wednesday as a notice of proposed rulemaking for public comment, would mandate that certain insured depository institutions that are subsidiaries of large and complex financial parent companies submit to the FDIC analysis, information and contingent resolution plans....
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