Big banks no longer need to plan for their own collapse

The US Treasury Department is removing rules that required large banks to create plans for how they would recover from a major financial crisis. This means banks will no longer have to submit these "recovery plans" to regulators.

After the 2008 financial crisis, regulators made big banks create detailed plans for how they would survive a major shock without needing a government bailout. These plans forced banks to think through their vulnerabilities and how they would manage them. Removing this requirement means banks have one less incentive to prepare for a crisis, shifting the burden back to taxpayers if a major bank fails.