U.S. banking regulators met with their counterparts from the United Kingdom Monday to work on their response in the case of a failure of a big bank with a multi-national presence.
The Federal Deposit Insurance Corporation, the agency that insures U.S. bank deposits and has responsibility for safely winding down failed banks, said that the “exercise” was hosted by its chairman, Martin Gruenberg, and built on previous coordinated efforts between the U.S. and U.K. to ensure that in the case of the failure of a big bank with an international footprint, they would be able to resolve it safely without the kinds of bailouts that took place during the 2008 financial crisis.
“The exercise demonstrates the continued commitment of the United States and the United Kingdom since the financial crisis to promote a safer and sounder financial system by cooperating to address issues involved in the orderly resolution of large and complex financial institutions without cost to taxpayers,” the FDIC said in a press release.
The meeting concerned banks, such as JPMorgan Chase in the U.S. and Barclays in the U.K., identified by the Financial Stability Board as “global systemically important banks,” or G-SIBs. The Financial Stability Board is the international body that coordinates among financial regulators.
Monday’s meeting included Treasury Secretary Jack Lew, Federal Reserve Chairwoman Janet Yellen, Comptroller of the Currency Thomas Curry, and other top U.S. financial regulators in addition to Gruenberg. The U.K. officials present included Chancellor of the Exchequer George Osborne and Bank of England Governor Mark Carney, according to the FDIC.
The meeting was timed for when the British regulators would be in town for the annual meeting of the International Monetary Fund, which was held over the weekend.
