Fed's Yellen: Remedy Deficiencies in Banks' Living Wills

The transcript discusses the Dodd-Frank Act's requirement for large financial institutions to submit living wills, which outline how they can be liquidated without harming the economy or needing taxpayer bailouts. The Fed and FDIC found some banks' living wills not credible, requiring them to address issues by October 1st. If banks fail, the Fed and FDIC can impose stricter regulations. The discussion emphasizes the importance of enforcing these rules to prevent another financial crisis, highlighting the need for accountability and potential consequences for non-compliance.

How have the banks responded to the requirements set by Dodd Frank since its passage?

What are the potential consequences for banks if they fail the credibility test on their living wills?