US Agencies (FDIC and FED) released public sections of the resolution plans of eight large domestic firms. These domestic firms 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. Resolution plans describe the strategy for rapid and orderly resolution under bankruptcy, in the event of material financial distress or failure.
Dodd-Frank Act requires that bank holding companies with consolidated assets of USD 50 billion or more and non-bank financial companies designated by the Financial Stability Oversight Council (FSOC) for supervision by FED periodically submit resolution plans to the US Agencies. Each plan, commonly known as a living will, must describe the strategy for rapid and orderly resolution under the U.S. Bankruptcy Code, in the event of material financial distress or failure of the company. Companies subject to the rule are required to file their resolution plans on a staggered schedule. The largest bank holding companies are required to submit their plans on or before July 01 each year. This group comprises domestic companies with USD 100 billion or more in non-bank assets and foreign-based companies with USD 100 billion or more in U.S. non-bank assets. Non-bank financial companies that are designated by FSOC also must submit on or before July 01. All other firms are required to submit their plans on or before December 31 each year. Requests for extensions are reviewed by the US Agencies.
Keywords: Americas, US, Banking, Resolution Plans, Living Will, Dodd-Frank Act, Large Banks, FSOC, US Agencies
Previous ArticleUS Agencies Consult on Capital Treatment of Land Development Loans
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).