US Agencies Extend Deadline for Certain Resolution Plan Submissions

The extensions will allow agencies to have additional time to provide feedback to the firms on their last submissions and for the firms to produce their next plans. Resolution plans, required by the Dodd-Frank Act and commonly known as living wills, must describe the company's strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure of the company. For foreign banking organizations, resolution plans are focused on their U.S. operations. 

Additionally, FDIC announced that it has extended the next filing due date for all insured depository institution resolution plan submissions to no sooner than July 01, 2020. These plans are required by FDIC regulation and are designed to enable FDIC, as receiver, to resolve an institution under the Federal Deposit Insurance Act in a way that provides depositors timely access to insured deposits, maximizes net present value return, and minimizes creditor losses. The extensions granted by the agencies are consistent with the time provided to other resolution plan filers to allow at least two years between resolution plan submissions.

Related Link: Joint Press Release

Keywords: Americas, US, Banking, Resolution Plans, Dodd Frank Act, Extension of Deadline, FED, FDIC