By Ryan Tracy
The Federal Reserve and the Federal Deposit Insurance Corp. found shortcomings in the “living wills,” or bankruptcy plans, of the U.S. units of BNP Paribas SA, HSBC Holdings PLC and Royal Bank of Scotland Group PLC. The banks could face sanctions if they don’t fix the issues by the end of this year, when new drafts of the plans are due, the regulators said.
The regulators’ move echoes a similar rebuke issued to 11 of the largest U.S. banks in August. Among the biggest firms, Wells Fargo & Co. was the only bank that persuaded regulators it could go through bankruptcy without serious damage to the financial system.
Dow Jones & Company, Inc.