WASHINGTON — Living wills would provide a failing financial institutions with a "first and most preferable option" to government assistance, Richmond Federal Reserve Bank President Jeffrey Lacker said Tuesday.

"Clearly, the Dodd-Frank Act envisions bankruptcy without government support as the first and most preferable option in the case of a failing financial institution, and for good reason, in my view," Lacker said in testimony prepared for the House subcommittee on Regulatory Reform, Commercial and Antitrust Law.

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