by J. D. Heyes, Natural News:
Is the nation and the world headed for another financial meltdown? You would think so, judging by what U.S. banks have been told to prepare for by regulators.
According to documents obtained by Reuters, officials from the Federal Reserve and the U.S. Office of the Comptroller of the Currency have directed five of the country’s top banks -Bank of America, Goldman Sachs, Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. – to develop plans for preventing a collapse if they once again faced serious problems because they wouldn’t be able to count on government assistance.
The program, which began in 2010 and was largely kept secret, is in addition to “living wills” banks were instructed to craft plans to help regulators dismantle them should they actually fail. The revelations “show how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress,” Reuters reported.