WASHINGTON — Regulators sounded blunt criticism Tuesday on the quality of "living wills" submitted by the most complex banks, but said they will give firms more time to improve their resolution plans before subjecting them to formal repercussions mandated by the Dodd-Frank Act.

The Federal Deposit Insurance Corp. and Federal Reserve Board said they found common "shortcomings" in the 11 banks' 2013 plans, including that banks have "unrealistic" assumptions about how investors and others would behave in a bankruptcy. The agencies' long-awaited statement — the first piece of substantive feedback on the resolution plans — said banks must address each identified weakness in their 2015 submissions or institutions could face regulatory consequences.

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