Federal regulators on Monday told three large foreign banks to resubmit their "living wills" by the end of the year, saying the submissions for 2014 were not credible. The three firms are: BNP Paribas , HSBC Holdings and The Royal Bank of Scotland Group . While the plans of each bank had its own shortcomings, the common features included unrealistic assumptions about the behavior of customers and counterparties and inadequate analysis about the interconnections within firms, the Federal Reserve and the Federal Deposit Insurance Corp. said. The "livings wills" are plans to allow the banks to enter bankruptcy without sparking another financial crisis if they fail. Regulators are giving the three banks another try to meet the standards. They said that if the resubmitted plans do not meet the standards, regulators have threatened to take whatever supervisory action the regulators deem appropriate, even forcing divestiture or simplification.
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