“The stakes for big banks — and regulators — are high as the agencies near the release of their evaluation of the largest institutions’ living wills.

“The Federal Deposit Insurance Corp. and Federal Reserve Board are expected to unveil soon how 12 of the largest and most complex banks did on detailing ways they could be taken account during a crisis. If both agencies determine that any of those plans are not up to snuff, they would start a regulatory clock that could ultimately result in regulators forcing the institution to break itself up.

“The latest submissions and the response of the Fed and the FDIC to those submissions, the importance of it cannot be overstated,” said Dennis Kelleher, president and chief executive officer of the public interest group Better Markets.”

***

“We not only have the credibility of the banks on the line this time, but the credibility of the Fed and FDIC are on the line as well now,” Kelleher said.”

Read the full American Banker article by Ian McKendry here.