WASHINGTON—U.S. regulators gave three large nonbank financial
firms initial feed back on the "living wills" they must create to
describe how they would go through bankruptcy without causing
broader economic damage.
The firms—American International Group, Inc., Prudential
Financial Inc., and General Electric Capital Corp.—have been
designated "systemically important," a label that comes with a
requirement to draft credible plans for their own demise.
The Federal Reserve and the Federal Deposit Insurance Corp. said
the three firms need to make improvements before they submit new
versions of the plans at the end of this year. For instance, they
asked for more details on how the firms would overcome obstacles
such as maintaining order at all their global offices during a
bankruptcy.
But the regulators didn't strike the same harsh tone they took
with the largest U.S. banks last August, when they issued a rebuke
about the plans' credibility and directed the banks to make
significant revisions.
Write to Ryan Tracy at ryan.tracy@wsj.com
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