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The Mystery of 'Living Will' Rules for Banks. Hal Scott, September 3, 2014, Opinion. "Most college students now returning to campuses will never hear the words that the Federal Reserve and the Federal Deposit Insurance Corp. spoke in August to the managements of the country's 11 largest banks: You've failed. Each of these big banks flunked the course titled "living wills." The Fed and the FDIC required the banks to make contingency plans detailing how in a crisis they would be wound down without suspending critical financial services, and without public support. The two regulators announced jointly..." Link