HSBC, BNP Paribas plan to cut securities units if they fail

Washington

HSBC Holdings Plc and BNP Paribas SA would ditch their securities units if they were to fail, while American International Group would spin off its non-life insurance divisions.

US regulators gave a glimpse on Friday at how about 125 financial firms propose to wind themselves down if they were to collapse. Excerpts of so-called living wills released by the Federal Reserve and Federal Deposit Insurance Corp show that the strategy of many banks is to leave subsidiaries operating while their parent companies go to bankruptcy court.