Featured Product

    US Agencies Adopt Final Guidance for 2019 Resolution Plan Submissions

    April 02, 2019

    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

    Related Articles
    News

    OSFI Publishes Instruction Guide on Solvency Information Return

    OSFI published an instruction guide to assist administrators of pension plans in completing the Solvency Information Return that is required to be filed with OSFI.

    January 17, 2020 WebPage Regulatory News
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    ISDA Paper Examines Legal Aspects of Smart Contracts Using Blockchain

    ISDA published a paper that discusses legal aspects of smart derivatives contracts that use the distributed ledger technology (DLT), which is also commonly known as the blockchain technology.

    January 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4505