HSBC to BNP Would Cut Securities Arms in Failure Plans
- Fed provided plan excerpts from about 125 financial firms
- Living wills aimed at helping avoid repeat of 2008 crisis
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HSBC Holdings Plc and BNP Paribas SA would ditch their securities units if they were to fail, while American International Group Inc. would spin off its non-life insurance divisions.
U.S. regulators gave a glimpse Friday at how about 125 financial firms propose to wind themselves down if they were to collapse. Excerpts of so-called living wills released by the Federal Reserve and Federal Deposit Insurance Corp. show that the strategy of many banks is to leave subsidiaries operating while their parent companies go to bankruptcy court.