Banks no longer need plans for when they might fail

The U.S. Comptroller of the Currency is removing rules that required large banks to create plans for how they would recover from financial distress. This means banks will not have to demonstrate they can manage their way out of a crisis.

For years, large banks had to show regulators they had a plan to survive a severe economic downturn. This was meant to prevent taxpayer bailouts. Rescinding these rules means banks will not be required to prove they can manage their own recovery, potentially shifting the burden back to the public if a crisis occurs.