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Article: Can 'Living Wills' Help Resolve Big Institutions?
- Article from:
- American Banker
- Article date:
- November 9, 2009
- Author:
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Byline: Joe Adler
WASHINGTON - While lawmakers consider whether to require systemically important firms to draft their own advance resolution plans - dubbed "living wills" - the utility of such outlines is already a matter of fierce debate.
Under legislation to create a regulatory regime for systemic firms, companies would have to submit regular wind-down plans to the government, giving regulators a road map of how they should be taken apart in a crisis without harming the financial system.
But several observers question whether such a guide would really be followed if another crisis hits.
"The exercise of figuring out where your risks ...