Stocks eked out some meager gains today but much of the focus was on a report from federal regulators that says five of the biggest banks in the U.S. have inadequate plans in case of failure, potentially leaving them unable to cope with financial distress without another taxpayer bailout. JPMorgan Chase, Bank of America, Wells Fargo, Bank of New York Mellon and State Street were cited by the Federal Reserve and the Federal Deposit Insurance Corp. for holes in their bankruptcy plans known as “living wills” that they were required to submit. The 5 banks were among eight Wall Street giants whose plans were evaluated.
The two agencies found the five banks’ plans are-
“Not credible or insufficient for an orderly restructuring in bankruptcy.”
The regulators gave the banks an Oct. 1st deadline to fix the problems or face possible “more stringent” requirements.
Meantime Goldman Sachs has agreed to pay $5 billion to settle claims by the U.S. Justice Department that it misled investors about the quality of home loans included in mortgage-backed securities the firm sold before the financial crisis of 2008. The settlement includes a $2.39 billion civil penalty, $1.8 billion in consumer relief and $875 million to resolve claims by other federal regulators and the states. The amount of the fine levied on Goldman Sachs ranks among the lowest by regulators against Wall Street firms such as JPMorgan Chase , Bank of America and Morgan Stanley.
According to a new survey, most Americans think the economy is getting worse. Watch below.
Here are the final numbers from Thursday, 4/14/16 on Wall Street:
Dow Jones Industrial Average: 17,926.43 (+18.15 / +0.10 %)
NASDAQ: 4.945.89 (-1.53 / -0.03 %)
S&P 500: 2,082.78 (+0.36 / +0.02 %)