US Agencies Adopt Final Guidance for 2019 Resolution Plan Submissions
US Agencies (FDIC and FED) adopted the final guidance for 2019 and subsequent resolution plan submissions by the eight largest, complex U.S. banking organizations (covered companies). The covered companies include Bank of America Corporation, The Bank of New York Mellon Corporation, Citigroup Inc., The Goldman Sachs Group, Inc., JPMorgan Chase & Co., Morgan Stanley, State Street Corporation, and Wells Fargo & Company. The final guidance is meant to assist these firms in developing their resolution plans, which are required to be submitted pursuant to the Dodd-Frank Act.
The final guidance, which is largely based on prior guidance issued to these covered companies in July 2018, describes the US Agencies' expectations about a number of key vulnerabilities in plans for an orderly resolution under the U.S. Bankruptcy Code. The final guidance also updates certain aspects of prior guidance based on the US Agencies' review of these firms' most recent resolution plan submissions. The proposed guidance described US Agencies' expectations in six substantive areas: capital, liquidity, governance mechanisms, operational, legal entity rationalization and separability, and derivatives and trading activities. US Agencies received and reviewed six comments on the proposed guidance.
After carefully considering the comments and conducting further analysis, US Agencies are issuing final guidance that includes certain modifications and clarifications to the proposed guidance. The payment, clearing, and settlement, along with the derivatives and trading activities, sections of the final guidance contain several changes based on respondents' suggestions, while retaining the key principles embodied in the proposed guidance. These principles include:
- Streamlining submissions of fiurms
- Facilitating continuity of payment, clearing, and settlement services in resolution
- Helping ensure that a firm's derivatives and trading activities can be stabilized and de-risked during resolution without causing significant market disruption that could cause risks to the financial stability of the U.S.
Related Link: Final Guidance
Keywords: Americas, US, Banking, Resolution Planning, Dodd-Frank Act, Covered Companies, US Agencies, FDIC, FED
Previous Article
EP Publishes Report on Proposal to Amend CRR and MiFIRNext Article
ESMA Agrees on Position Limits Under MiFID IIRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.