Sure it might make sense to have a rule, set to be finalized this week, requiring banks to have resolution plans for quick liquidation in the event of a liquidity crisis. But why does it have to be all about failure?

Banking executives and consultants working for large banks say the rule should include room for what a financial institution would do to nurse itself back to health and avoid having to be liquidated. …

“What we would like to say and what we are trying to encourage in the rule is: Don’t have a rule that is biased toward failure, have a rule that presumes recovery,” said Wayne Abernathy, a top executive at the American Bankers Association.

That idea is being met skeptically by regulators, at least as a component of the living will rule.

U.S. banks look for kinder, gentler death plans (Reuters)

Comments (11)

  1. Posted by Texashedge | September 12, 2011 at 6:01 PM

    Pictured, top right: Tony Romo

  2. Posted by Lazy Fare | September 12, 2011 at 6:02 PM

    Yes (blonde in the back right with a pink bow in its hair)

  3. Posted by Dude eating the hand | September 12, 2011 at 6:12 PM

    C'mon Matt, that picture is obviously a visual metaphor of what you think of DB commenters today. Guess what, it is also reflection of how we feel having been subjugated by your posts today. Hopefully your mom makes you nice balanced supper with some warm milk and you can come back tomorrow and try again. We'll still be here, hating you.

    Take a lap.

  4. Posted by Not Impressed | September 12, 2011 at 6:44 PM

    Dude, I think I see Harry Potter and his Asian girlfriend in the second row.

  5. Posted by Barney Frank | September 12, 2011 at 6:52 PM

    Agree to disagree. Let's just go with "Healthcare Power of Attorney" and I will be in charge of pulling the plug.

  6. Posted by ***BL*** | September 12, 2011 at 6:54 PM

    Matt, what was the very last thing I said? "No Zombies" – how many times do I have to tell you. Clowns in sewer, YES – Zombies – NO.

  7. Posted by M. Levine | September 12, 2011 at 7:12 PM

    Well, my ma said she thought it might be good if try to bring out my creative side while you are away and not require so much supervisory direction.

  8. Posted by Can't read | September 12, 2011 at 7:32 PM

    WHERE'S MY EFFING CHART, MATT?????

  9. Posted by Guestimus | September 12, 2011 at 7:54 PM

    Lights on or off?

  10. Posted by Back Office Ops | September 12, 2011 at 10:21 PM

    This is DB you can just say FUCKING.

  11. Posted by CAAAARRRRLLLLLLL | September 13, 2011 at 9:32 AM

    My tummy had the rumblies….. that only hands can satisfy

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