WASHINGTON, Oct 4 (Reuters) - The Federal Reserve on Tuesday said it has received Wall Street plans for how to wind down leading banks in the case of bankruptcy and regulators will begin reviewing that paperwork.
The ‘living will’ paperwork came from eight leading banks including Goldman Sachs & Co, Bank of America Corp and JPMorgan Chase & Co.
The Fed and Federal Deposit Insurance Corp will decide whether the leading banks can feasibly be wound down in the case of a financial crisis or bankruptcy.
Any bank that does not meet the regulators’ test may be forced to break itself into smaller lenders. (Reporting By Patrick Rucker; Editing by Chris Reese)