WASHINGTON – Parts of the revised resolution plans of the eight largest U.S. banks were released Tuesday, according to the Federal Reserve and Federal Deposit Insurance Corp.
The banks were required by regulators to provide corrections or updates on their plans by Oct. 1. The stakes are highest for the five banks that failed their living will assessments earlier this year from both the Fed and FDIC: Bank of America, Bank of New York Mellon, JPMorgan Chase, State Street and Wells Fargo. If their revised plans do not correct flaws detected by regulators, the agencies could force several actions, including eventual asset divestures.
"If a firm has not remediated the identified deficiencies, it may be subject to more stringent prudential requirements," the Fed said in a statement on Tuesday.
Meanwhile, Morgan Stanley and Goldman Sachs, which both received failing grades from only one regulator, as well as Citigroup, which received a passing grade from both, also had to submit status updates. However, they will not have to remedy the shortcomings identified by regulators in April until the next round of living wills is due in 2017.