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Fed gives Northern Trust 'living will' extension along with four foreign banks

Pedestrians walk by the Northern Trust banking company's headquarters in Chicago, Illinois.
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Pedestrians walk by the Northern Trust banking company's headquarters in Chicago, Illinois.

Northern Trust had shortcomings in its "living will" plans and has until year-end to update a proposal for how to unwind if it went bankrupt, U.S. regulators said on Friday as they granted an extension for four foreign banks to comply.

Barclays, Credit Suisse, Deutsche Bank, and UBS each received one-year extensions to July 2018 to satisfy regulators on their living wills, according to the U.S. Federal Reserve.

Large foreign banks must operate all their U.S. businesses under one corporate umbrella, the Fed declared in 2014. Friday's extension should give those banks more time to comply.

The Fed and Federal Deposit Insurance Corp. on Friday granted the extension and gave guidance to those four banks "to reflect the significant restructuring that they have undertaken to form intermediate holding companies."

A Northern Trust spokesman was not immediately available for comment.

Fifteen of the 16 other domestic financial services companies reviewed under this part of the living will exams passed, the regulators said.

Those domestic banks are American Express, Ally Financial, BB&T, Capital One Financial, Comerica, Discover Financial Services, Fifth Third Bancorp, Huntington Bancshares, Key Corp, M&T Bank, Regions Financial, Sun Trust Banks, The PNC Financial Services, U.S. Bancorp, and Zions Financial Bankcorp.