The Board of Governors of the Federal Reserve System (FED) and the Federal Deposit Insurance Corporation (collectively US Agencies) released public sections of the resolution plans of eight large domestic banks. These US Agencies generally require Title I Resolution Plans from U.S. bank holding companies and foreign banking organizations with USD 250 billion or more in assets or USD 100 billion in assets. The resolution plans are required by the Dodd-Frank Act and commonly known as living wills.
The resolution plans describe a company’s strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure. Eight banks were required to submit targeted resolution plans by July 01, 2021. Out of the eight banks, five banks have (US nonbank) assets of USD 250 billion or more: Bank of America Corporation, Citigroup Inc, The Goldman Sachs Group, Inc, JPMorgan Chase & Co, and Morgan Stanley. The other three banks are The Bank of New York Mellon Corporation, State Street Corporation, and Wells Fargo & Company. By regulation, resolution plans must be divided into public and confidential sections. To foster transparency, the agencies have required each firm’s public section to summarize certain elements of the resolution plan and this public section information has now been disclosed.
Keywords: Americas, US, Banking, Resolution Planning, Dodd-Frank Act, Basel, Large Banks, Resolution Framework, US Agencies
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