Fed Orders Banks To Create ‘Super Secret, Entirely Useless’ Plan To Avoid Blowing Each Other Up
by Tyler Durden
Just when you had got over the entirely inane creation of a living-will that purports to solve the taxpayer’s dilemma should a large SIFI hit an iceberg; Reuters reports – this time super secret – the Fed, in 2010, asked for a plan from the US’ Big 5 Banks for staving off collapse if they faced serious problems – critically emphasizing that the banks can’t rely on government help. Read that again and we dare you not to laugh. It seems regulators are trying hard to ensure banks have plans for worst-case scenarios – in order to act rationally in times of distress.