Bloomberg News reports that U.S. regulators gave a glimpse Friday at how about 125 financial firms propose to wind themselves down if they were to collapse. Excerpts of so-called living wills released by the Federal Reserve and Federal Deposit Insurance show that the strategy of many banks is to leave subsidiaries operating while their parent companies go to bankruptcy court.
Plans of non-U.S. banks including Royal Bank of Canada, Toronto-Dominion Bank, Royal Bank of Scotland and Banco Santander were among those disclosed. RBC said it would likely sell assets operated through its capital markets division into the market rather than seeking a single buyer for that unit. RBS said if it were to face failure, it would look to shed its U.S. operations.
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