Reuters reported that U.S. banks have given a proposal to federal regulators on how to pay for restructuring the country's too-big-to-fail institutions in the event of a future crisis, the Wall Street Journal reported, citing people familiar with the conversations.

According to the Wall Street Journal report, the largest financial services holding companies would maintain a certain amount of debt and equity that would be used to prop up any failed bank subsidiary seized by regulators. Some banks might even be forced to issue expensive long-term debt, according to the newspaper.

Regulators have not yet responded to the bank's proposal and could reject it in favor of their own plan according to the WSJ report.