As of Monday, major financial institutions -- those once deemed "too big to fail" -- were required to submit to regulators their so-called living wills. The plans would diagram how the banks would be broken apart should they find themselves unable to exist in their current form.

But the plan, part of the Dodd-Frank banking regulations instituted in the wake of the 2008 financial crisis, may be for little more than appearance's sake should a similar-size catastrophe hit the banking system.


Matt McCormick, portfolio manager at Bahl & Gaynor, told CNBC's "Squawk on the Street." "If these banks go out or (get) to the point where it's going to happen, in my opinion it's going to be from unforeseen circumstances."

McCormick pointed to the case of Dexia, the Franco-Belgian bank that needed to be bailed out after nearing collapse. The bank's troubles came even though it once boasted the highest capital ratio of its peers and easily passed bank stress tests.


"It is now time for analysts to look at these living wills and see what correlations exist among bank living wills -- i.e., what businesses the banks as a group have demarcated as marginal. Then it is the job of the analysts to start pounding on banks to rid themselves of these businesses," Bove said. "Great job Congress, the American people really benefit by this one."

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