Risk News

5/23/2012
FDIC Says It Can Handle Failure of Giant Bank
Maya Jackson Randall, Wall Street Journal

"A top U.S. banking regulator said his agency could handle the failures of large, complex banks including J.P. Morgan Chase JPM -1.32% & Co., the nation's largest bank by assets, if they faltered and presented a risk to the broad financial system."

Annie's take:

For those of us who have direct experience of the FDIC's ability to handle the failure of a large bank, it's not at all clear that the business process management the FDIC can apply with smaller or regional banks will work with a large one, without large impacts to taxpayers.