Financial Shares Slip With Bank Plans Questioned -- Financials Roundup

Financial company shares fell as federal regulators raised doubts about how some of the biggest banks in the country would try to wind themselves down in the event of a failure.

The Federal Reserve and the Federal Deposit Insurance Corp. said resolution plans from JPMorgan Chase, Bank of America, Goldman Sachs and Citigroup all had weaknesses, raising questions about their feasibility. The plans, known as living wills, detail how they would wind down operations and repay creditors if they went bust.

The regulators were divided on Citi's plan, with the FDIC giving it a failing grade as "not credible" and the Fed listing it as a less-severe falling short. The other three banks were all given shortcoming ratings.

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(END) Dow Jones Newswires

06-21-24 1644ET