Today's Outrage: Preplanning Bank Burials

Today's Outrage is published weekdays at 9:30 a.m. EDT and is available as an RSS feed.

The Obama Administration wants the biggest of the big banks to start planning their own funerals.

Any bank such as Citigroup (C Quote), Goldman Sachs (GS Quote) and Bank of America (BAC Quote) that is considered too big to fail because of its size, leverage or the degree that its operations are interwoven into the fabric of the entire financial system would need to draft detailed plans for unwinding their operations should it ever come to that.

An analysis of the administration's proposed regulatory overhaul by the Associated Press concludes that the new scrutiny, larger cash cushions and asset requirements that the administration desires are intended to limit the number of systemically risky financial institutions by making it unappealing to get that big. ...