Oct 10 (Reuters) - Regulators from the United States and the United Kingdom will get together in a war room next week to see if they can cope with any possible fall-out when the next big bank topples over, the two countries said on Friday.
Treasury Secretary Jack Lew and the UK's Chancellor of the Exchequer, George Osborne, on Monday will run the first-ever joint exercise simulating how they would prop up a large bank operating in both countries that has landed in trouble.
Also taking part are Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney, and the heads of a large number of other regulators, in a meeting hosted by the U.S. Federal Deposit Insurance Corporation.
"There is no doubt that in 2008 the judgment taken by my predecessor and others was that banks ... like the Royal Bank of Scotland and others were too big to fail," Osborne said.
"Now I want to make sure that ... we have real options, and that we are able to avoid bailing in taxpayers with a bailout. And I'm pretty confident that's the case now," he said.
Six years after the financial crisis, politicians and regulators around the globe are keen to prove they have created rules that will allow them to let a large bank go under without spending billions in taxpayer dollars....
For more, see http://www.reuters.com/article/2014/10/10/banks-regulations-collapse-idUSL2N0S531620141010