Banking regulators found fault with resolution plans filed by four of the largest foreign lenders, though none of the shortcomings were severe enough to warrant rejecting the "living wills."
Deutsche Bank, Barclays, Credit Suisse and UBS must do additional work on the hypothetical bankruptcy plans to fix the weaknesses identified by the Federal Reserve and Federal Deposit Insurance Corp., the agencies said in a statement Thursday.
One problem area identified by the regulators is how the banks coordinate between their U.S. operations and foreign parents under stress. Credit Suisse also must shore up its ability to estimate its U.S. liquidity needs, the agencies said.
Deutsche Bank will address the feedback from regulators, the company said in a statement, noting the government's finding "demonstrates our progress simplifying and enhancing the resolvability of our U.S. operations." All of the problems cited by the regulators must be fixed by July 1, 2020, the deadline for the banks' next resolution plan filings.
The agencies also finished living-wills guidance for the eight largest and most complex U.S. banks, including JPMorgan Chase & Co. and Goldman Sachs Group Inc. It's similar to a proposal issued in June, giving the lenders more information for writing their plans.
