Economy Briefs: Big banks submit “living wills” to regulators

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Nine of the largest U.S. banks have submitted plans to the federal regulators that show how they would break up and sell off their assets if they are in danger of failing.

The Federal Deposit Insurance Corp. released summaries of the “living wills” on Tuesday for Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and UBS.

The plans were required under the 2010 financial overhaul, which gave regulators the power to seize and dismantle banks that threaten the broader financial system.

The government did not have a plan for winding down troubled banks during the 2008 financial crisis. Instead, it provided taxpayer-funded bailouts to the banks.

More than 100 other banks are required to submit living wills by the end of next year.

RESIGNATION

CEO of Barclays quits amid scandal

LONDON — Barclays Chief Executive Bob Diamond resigned Tuesday, followed a few hours later by the bank’s chief operating officer, in a deepening scandal over the rigging of key interest rates.

The latest resignations took to three the number of senior Barclays staff members to have quit in the past two days over revelations that the bank’s traders lied about the interest rates it was being charged by other banks.

Mr. Diamond and Chief Operating Officer Jerry del Missier stepped down a day after Barclays Chairman Marcus Agius resigned amid an intense and deepening political row over standards in the City of London financial sector.

On Tuesday, Barclays said Mr. del Missier had interpreted a note from Mr. Diamond as suggesting that the Bank of England wanted it to manipulate the key Libor interbank interest rate.

Mr. Diamond had held a phone call with the bank’s deputy governor, Paul Tucker, in 2008 in which Mr. Tucker told Mr. Diamond that Barclays‘ submission did not always need to be as high as it was.

AIRCRAFT

Hawker Beechcraft in talks with potential buyers

WICHITA, Kan. — Aircraft-maker Hawker Beechcraft is narrowing down a list of potential buyers as part of its plan to emerge from bankruptcy reorganization.

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