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The "living will" requirement mandated by last year's Dodd-Frank financial reform law is also designed to end the idea that some firms are too big to fail.
The bill also guts the "living will" requirement that banks have detailed plans for how to fold in the event they teeter on the brink of collapse, as so many did in 2008.
Dubbed "the Choice Act" ― officially the Economic Growth, Regulatory Relief, and Consumer Protection Act ― the new Republican bill removed the "living will" requirement for mid-sized banks, thereby allowing the big banks a gateway to do the same.
The living will requirement could actually yield similar results to restoring Glass-Steagall without actual re-enactment of the Depression-era laws separating commercial banking from investment banking, former FDIC Chairman Sheila Bair told Reuters TV earlier this month.
While a strong case for the Dodd-Frank living will can be made based on the experience of companies that did not survive the financial crisis, it is only effective and desirable from a regulatory perspective if things would have turned out differently for the broader financial markets with the living will requirement in place.
Similar(51)
Will a requirement to ban FGM make the final document?
As life expectancy of the general population increases, so too will the requirement for revision THA.
Based on this definition two alternative power requirements will be specified: power requirement I and power requirement II.
They will impose requirements or bans to deal with the underlying causes of the problem.
Will the requirements of people significantly change in the future?
They will fulfill requirements, implied by the containment, eradication, and recovery phase.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com