The US Agencies (FED and FDIC) posted the public portions of annual resolution plans for eight large financial firms. These firms were required to submit plans on July 01, 2017.
The two agencies also announced that two non-bank financial companies, namely American International Group, Inc. and Prudential Financial, Inc., will be required to submit their next resolution plans by December 31, 2018. Earlier, the firms were required to submit their next plans by December 31, 2017. The extensions will allow the firms time to incorporate any guidance from the agencies into their next resolution plans.
The eight firms whose plans were published are Bank of America Corporation, Bank of New York Mellon Corporation, Citigroup Inc., Goldman Sachs Group, JPMorgan Chase & Co., Morgan Stanley, State Street Corporation, and Wells Fargo & Company. The agencies will begin reviewing both the confidential and public portions of the resolution plans. By regulation, resolution plans must be divided into a public section and a confidential section. To foster more transparency, the agencies have required each firm’s public section to summarize certain elements of the resolution plan, including the firm’s material entities and core business lines, and information helpful in understanding how the resolution plan would be executed. 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.
Related Link: Resolution Plans of Firms
Keywords: Americas, FED, FDIC, Banking, Dodd Frank Act, Resolution Plan, NBFC
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