“WASHINGTON — Since the financial crisis, regulators have pushed megabanks to simplify their legal operations in order to make them easier to seize and dismantle if they later become troubled.
“But now regulators are working to force the largest banks to rethink their legal entity regimes in an effort to improve operational efficiency.
“Until now, the effort has largely been driven by the Federal Deposit Insurance Corp. and Federal Reserve Board, both of which want banks to become more “resolvable” in an effort to end “too big to fail.”
“But the Office of the Comptroller of the Currency said last week it was also urging banks to simplify regimes on a supervisory basis and plans to share data about simplification projects with the other banking agencies.”
Read full American Banker article here.