Big banks can be dismantled, say US and UK regulators

Even one of the largest global banks could be taken apart safely byUS government authorities if it were to fail today, according to banking regulators from the US and UK. A US plan for seizing and liquidating a major bank would work if necessary, although it would be messy, according to Art Murton, a senior Federal Deposit Insurance Corp official in charge of planning how to dismantle complex firms, and Bank of England Deputy Governor Paul Tucker. 

They spoke on Saturday at an Institute of International Finance event in Washington. "I think US authorities could do it today - and I mean today," said Tucker, who has worked with US regulators on cross-border hurdles to taking down an international firm. "A global financial system will not survive if we don't crack this problem."

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