Regulators Must Be Ready to Unwind Complex Banks, Chopra Says

US regulators should consider taking apart risky banks that submit unreliable resolution plans, Consumer Financial Protection Bureau Director Rohit Chopra said.

Responding to the recent failures of Silicon Valley Bank, First Republic Bank and Signature Bank, Chopra said Thursday the Federal Reserve and the Federal Deposit Insurance Corp. already have the authority to unwind banks whose complexity poses a risk to US financial stability. Chopra is a member of the FDIC’s board.

“If the plans are not credible, or if executing the plans would disrupt our economy, the Federal Reserve Board and the FDIC Board ultimately have the ability to ...