“US regulators have warned banks not to assume that countries will work together to avoid the catastrophic failure of a financial group.

The alert to the world’s biggest international financial institutions followed growing concerns about the progress of global regulatory reform efforts.

The guidance to banks preparing “living wills” to ensure a more orderly wind-down in a future Lehman Brothers scenario came as the Financial Stability Board, a group of central bankers and regulators, prepares to meet on Monday to discuss the resolution regime.

New versions of the living wills, or resolution plans, are due to be filed in the summer. The Federal Reserve and Federal Deposit Insurance Corporation have told banks that they should not do as many did in the first round last year and count on regulators to co-operate.”

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