U.S. Fed spots flaws in Wells Fargo resolution plan
WASHINGTON, Nov 25 (Reuters) - U.S. regulators said on Tuesday that Wells Fargo & Co needed to improve a crisis plan showing how it could be shut down without causing financial mayhem, but its plan drew less harsh criticism than those of other banks.
Large U.S. banks must submit the so-called living wills to spell out how they can enter bankruptcy without triggering the need for costly taxpayer bailouts that were rampant during the 2007-09 financial crisis.
The Federal Reserve and the Federal Deposit Insurance Corporation said the bank's 2014 plan was an improvement over last year's plan, but that it still needed work.
In August, the same two agencies blasted the living wills submitted by 11 other big banks, saying they were overly optimistic and allowed the banks to be too complex.
The FDIC was the fiercest critic of the two agencies, saying the plans were "not credible", a first step to taking regulatory action over the plans.
(Reporting by Douwe Miedema; editing by Gunna Dickson)
