WASHINGTON — The Federal Reserve and Federal Deposit Insurance Corp. announced Friday that 84 foreign banks with limited U.S. operations will be able to file more condensed resolution plans, decreasing the administrative burden and cost.
In a June 10 notice, the Fed and FDIC said that the 84 firms have already filed "living will" submissions in previous years, and as part of those submissions they have detailed the relatively narrow extent of their U.S. operations. Future submissions will only have to update those earlier submissions, detailing what, if any, changes those banks have made to their activities or operations as it concerns their resolution planning.
"All of the firms have submitted prior plans that provide the agencies with an understanding of their limited U.S. operations," the joint notice said. "The reduced content plans should focus on changes the firms have made to their prior resolution plans, actions taken to improve the effectiveness of, or that may alter, those plans, and, where applicable, actions to ensure any subsidiary insured depository institution is adequately protected from the risks arising from the activities of nonbank subsidiaries of the firm."
The Dodd-Frank Act requires all banks with more than $50 billion in consolidated global assets to file a resolution plan — known as a living will — detailing how they would be wound down in a traditional bankruptcy proceeding. The 84 banks subject to Friday's reduced requirements each have less than $50 billion in U.S. assets, the agencies said, though their presence elsewhere in the world may exceed the $50 billion threshold.