Oversight

FDIC, Federal Reserve publish 11 banks’ living wills

150px-US-FDIC-Logo.svgThe FDIC and Federal Reserve released public sections of recently filed annual resolution plans for 11 financial institutions, which describe the companies’ emergency exit plan for orderly resolution in the event of failure or distress.

Firms required to submit initial plans last year—generally those with nonbank assets of more than $250 billion, including Bank of America, Bank of New York Mellon, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street Corp. and UBS—were required to submit revised proposals by Oct. 1.

Firms with between $100 billion and $250 billion in total nonbank assets submitted their initial resolution plans at the beginning of July, and another group with less than $100 billion in assets is required to submit their plans by Dec. 31.

Under Dodd-Frank, banks are required to submit a public portion of their plan, which is posted on regulators’ websites, and a separate confidential section analyzed by regulators, Chicago Tribune reports.

After finding numerous planning flaws last year, regulators asked the institutions to include more detailed information for this round of so-called “living wills.” Regulators also asked banks to discuss how funding and liquidity, interconnectedness and cooperation could affect regulators’ ability to resolve the institutions during a crisis.

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