Nine of the largest U.S. banks have submitted plans to the federal regulators that show how they would break up and sell off their assets if they are in danger of failing.
The Federal Deposit Insurance Corp. released summaries of the “living wills” on Tuesday for Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and UBS.
The plans were required under the 2010 financial overhaul, which gave regulators the power to seize and dismantle banks that threaten the broader financial system.
The government did not have a plan for winding down troubled banks during the 2008 financial crisis. Instead, it provided taxpayer-funded bailouts to the banks.
More than 100 other banks are required to submit living wills by the end of next year.
RESIGNATION
CEO of Barclays quits amid scandal
LONDON — Barclays Chief Executive Bob Diamond resigned Tuesday, followed a few hours later by the bank’s chief operating officer, in a deepening scandal over the rigging of key interest rates.
The latest resignations took to three the number of senior Barclays staff members to have quit in the past two days over revelations that the bank’s traders lied about the interest rates it was being charged by other banks.
Mr. Diamond and Chief Operating Officer Jerry del Missier stepped down a day after Barclays Chairman Marcus Agius resigned amid an intense and deepening political row over standards in the City of London financial sector.
On Tuesday, Barclays said Mr. del Missier had interpreted a note from Mr. Diamond as suggesting that the Bank of England wanted it to manipulate the key Libor interbank interest rate.
Mr. Diamond had held a phone call with the bank’s deputy governor, Paul Tucker, in 2008 in which Mr. Tucker told Mr. Diamond that Barclays’ submission did not always need to be as high as it was.
AIRCRAFT
Hawker Beechcraft in talks with potential buyers
WICHITA, Kan. — Aircraft-maker Hawker Beechcraft is narrowing down a list of potential buyers as part of its plan to emerge from bankruptcy reorganization.
The Wichita Eagle reported that the company disclosed in court documents that along with its investment banker, Hawker Beechcraft developed a list of potential buyers and investors in the months preceding its May 3 filing for Chapter 11.
The details are included in a preliminary reorganization plan and a related disclosure statement that Hawker Beechcraft filed over the weekend with the federal Bankruptcy Court in New York. The company says it began with an initial field of 35 potential buyers and received bids last month from eight.
The prearranged bankruptcy plan is aimed at reducing the company’s total funded debt of more than $2.5 billion.
BANKRUPTCY
Ski town votes to file for bankruptcy
LOS ANGELES — Council members in a small ski town high in California’s Sierra Nevada voted unanimously Monday to file for bankruptcy, the second local government in the state to recently make that decision.
Mammoth Lakes is facing a $43 million judgment that’s more than twice the town’s budget. Papers seeking Chapter 9 bankruptcy protection could be filed in court by the end of this week, said Marianna Marysheva-Martinez, the assistant town manager.
The city of more than 8,000 people about 300 miles north of Los Angeles has lacked sufficient revenue to pay $2.7 million in obligations, and a state court has ordered it to repay its largest creditor, Mammoth Lakes Land Acquisition.
The town lost a property development fight that left it with a $30 million legal judgment in 2008. Mammoth Lakes had tried to back out of a 1997 agreement that gave a developer the right to develop a hotel and buy land in return for improving the local airport.
• From wire dispatches and staff reports
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