US Unveils Plan to Hit More Banks With Debt Requirements (2)

US officials unveiled their latest response to this year’s bank turmoil with proposals to boost oversight of midsize lenders and require them to prepare better for potential failures.

The plans from the Federal Deposit Insurance Corp. and the Federal Reserve aren’t a sign of new stresses in the sector, but are instead an attempt to ensure that lenders can be dissolved smoothly and quickly following any collapse.

Both regulators homed in on hypothetical resolution plans, known as living wills. The Fed’s proposal would bolster such plans for bank holding companies and foreign banking firms with more than $250 billion in ...