FDIC Wants Riskiest Firms' 'Living Wills' By July

Law360, New York (September 13, 2011, 1:53 PM EDT) -- The Federal Deposit Insurance Corp. on Tuesday gave the largest, most systemically important financial companies until July to provide so-called living wills, detailed plans on how to divide up their assets if they fail.

The interim final rule will require major nonbank financial institutions, like insurance companies and investment banks, and bank holding companies, to provide living wills to regulators so they can quickly unwind a failed institution's operations with minimal ripple effects on the broader financial system. The rule is an attempt to avoid future...
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