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 issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.