WASHINGTON — The Federal Reserve Board and Federal Deposit Insurance Corp. on Wednesday gave the four systemically important foreign banks one additional year to file their living wills.
Barclays, Credit Suisse, Deutsche Bank and UBS now have until July 1, 2017, to file their resolution plans. The agencies are giving those institutions more time because they are in the process of centralizing their U.S. operations under a so-called intermediate holding company, as required by a Fed rule under the Dodd-Frank Act.
"The formation of an IHC will facilitate supervision and regulation of the U.S. operations of a foreign bank, and certain IHC-required initiatives are likely to affect the firms' resolution plans and strategies," regulators said in the announcement. The four foreign banks are due to have their intermediate holding companies set up by July 1, 2016.
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In declaring that five U.S. banks' resolution plans were "noncredible," regulators provided new details on exactly what each institution did wrong, as well as what Citi and others did right. Here's what they said.
April 13 -
Regulators struck down the living wills of five of the eight megabanks under evaluation, including JPMorgan Chase, Bank of America and Wells Fargo, requiring them to submit fixes to their resolution plans by Oct. 1 or face more stringent regulatory requirements.
April 13 -
Regulators have yet to provide feedback on last year's living-will resolution plans, but for foreign banks with significant operations in the U.S., those assessments are too late. Such institutions are required to put in place an entirely different business model by July of this year.
April 11
The deadline has already been extended for the eight large domestic banks, which were also instructed to correct deficiencies to their latest living wills by October.
But unlike the eight U.S. banks, the foreign banks have not yet received feedback on their last living wills, which were filed on July 1, 2015.
The Fed and FDIC did not indicate when they would be issuing the critiques, but said that guidance for the companies' 2017 plans was also in the works.
