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Large banks must submit unwinding plans

WASHINGTON (AP) — The largest U.S. banks will be required to show regulators how they would break up and sell off their assets if they are in danger of failing.

The Federal Deposit Insurance Corp. voted 3-0 Tuesday to approve the rules, which were mandated under the financial overhaul passed by Congress last year. They are designed to reduce the chances of another government bailout of Wall Street banks in the event of another financial crisis.

The rules require banks with $50 billion or more in assets to submit so-called living wills to the FDIC, the Federal Reserve and the Financial Stability Oversight Council and send revised plans annually.

Among the banks affected are Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co.

The biggest banks of the group would have to start filing their plans next July. The others wouldn’t be due until 2013.

The FDIC says that 124 financial firms plus 37 federally insured banks and thrifts will be subject to the requirements. Twenty-six of the institutions are U.S. banks or financial firms. The rest are U.S. subsidiaries of banks based in foreign countries.

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