By Ryan Tracy
WASHINGTON--U.S. regulators gave Wells Fargo & Co. a passing
grade on plans for its own theoretical bankruptcy, setting the big
bank apart from its peers whose so-called living wills were
rejected this past summer.
The Federal Reserve and Federal Deposit Insurance Corp. said
Wells Fargo's living will "could facilitate an orderly resolution
under bankruptcy" but said the blueprint still had some
shortcomings that must be addressed when the bank files a revised
plan in 2015.
The two regulators in August faulted 11 other large banks for
their living wills, raising concerns about unrealistic assumptions
by banks about the level of government support during a crisis and
other problems.
The regulators used much harsher language for those banks than
they did in discussing Wells Fargo's plan on Tuesday. The
California-based lender wasn't part of the group of banks that got
feedback in August.
Write to Ryan Tracy at ryan.tracy@wsj.com
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