U.S. regulators said that Wells Fargo & Co. has convinced them that the financial system would not likely be seriously damaged if the bank were to ever collapse, giving it a passing grade that ratchets up the pressure on other big banks slammed for producing unrealistic bankruptcy plans a few months ago, Dow Jones Newswires reported yesterday. The San Francisco-based lender graded better than its peers yesterday on its plan for a theoretical bankruptcy, but it still doesn't have the top score regulators would like to see. The Federal Reserve and Federal Deposit Insurance Corp. said that a hypothetical bankruptcy plan submitted by Wells Fargo "provides a basis for a resolution strategy that could facilitate an orderly resolution under bankruptcy" but said the blueprint still had some shortcomings that must be addressed when the bank files a revised plan in 2015.
