WASHINGTON Dec 13 Wells Fargo would damage
financial markets if it were pushed to bankruptcy, U.S.
regulators said on Tuesday as they imposed restrictions on the
bank's business after a second review under post-recession
The nation's largest banks must offer regulators 'living
wills' that outline how they would be unwound in an orderly way.
Wells Fargo was one of five banks to fail an initial assessment
On Tuesday, regulators determined that Wells Fargo's living
wills fell short and that the San Francisco-based bank would be
sanctioned, the Federal Deposit Insurance Corporation said in a
Specifically, the bank may not establish international bank
entities or acquire non-bank subsidiaries, the FDIC said.
Wells Fargo may submit an amended living will by March 31
and regulators may lift restrictions then.
Four other banks passed muster after failing the initial
assessment of living wills in April. Those banks are JPMorgan
Chase, Bank of America, State Street Corp
and Bank of New York Mellon.
(Reporting by Patrick Rucker and Dan Freed; Editing by Richard