Dodd's Bill Requires Banks to Plan Their Own Death (GS, MS, C, BAC, JPM, WFC)

One interesting part of Senator Dodd's financial reform bill released today was "Funeral Plans" which will basically require banks to submit plans for their own demise. This should be interesting reading if the plans are ever made public.

Here is the wording from Dodd's summary on "Funeral Plans"

"Requires large, complex companies to periodically submit plans for their rapid and orderly shutdown should the company go under. Companies will be hit with higher capital requirements and restrictions on growth and activity, as well as divestment, if they fail to submit acceptable plans. Plans will help regulators understand the structure of the companies they oversee and serve as a roadmap for shutting them down if the company fails. Significant costs for failing to produce a credible plan create incentives for firms to rationalize structures or operations that cannot be unwound easily."

Related stocks:
Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Citigroup (NYSE: C), Bank of America (NYSE: BAC), JP Morgan (NYSE: JPM), Wells Fargo (NYSE: WFC).

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