Elizabeth Warren grills Yellen about the Banks' 'Living Wills' - plans for orderly bankruptcy which
.. they are supposed to create in compliance with the Dodd-Frank Financial Reform legislation..
http://www.usatoday.com/story/money/business/2014/08/12/delamaide-banks-living-wills/13977009/
WASHINGTON — While the legislative process in Washington seems to be broken, congressional oversight shows occasional signs of being alive and kicking.
Case in point: Sen. Elizabeth Warren, D-Mass., skewered Federal Reserve chairman Janet Yellen at a hearing in July on the subject of living wills that large banks are supposed to be submitting — credible plans on how bankruptcy of these behemoths could be handled in a rapid and orderly fashion without taxpayer bailouts.
Warren wanted to know -- yes or no -- if the Fed had found these plans credible, as they are bound by law to do. Or, failing that, whether regulators were ready to invoke the authority given them by the Dodd-Frank financial reform to order these banks to streamline their operations or even liquidate some assets.
Every time Yellen tried to duck the question with comments like "the living will process as I understand it is something that's intended to be iterative," Warren came back, insisting that the legislation was pretty clear that regulators are to determine each year whether these plans are credible or not.
(more)
= new reply since forum marked as read
