WASHINGTON Federal regulators extended the deadline for three nonbank firms considered "systemically important" to submit their revised resolution plans, also known as living wills.
American International Group, General Electric Capital and Prudential Financial will have an extra six months, to Dec. 31, to deliver the plans to the Federal Deposit Insurance Corp. and the Federal Reserve Board, the two agencies said Wednesday. The extension, which applies to the second draft of the firms' living wills, is similar to the extra time bank holding companies had to complete their revised living wills.
Under the Dodd-Frank Act, large financial firms must prepare a road map that details how they would be unwound in bankruptcy and submit annual updates of the plan. Companies subject to the living-will requirement include bank holding companies with over $50 billion, as well as nonbanks designated by the Financial Stability Oversight Council as a "systemically important financial institution." AIG, GE Capital and Prudential the first three nonbank firms designated by the council submitted their initial living-will drafts in July 2014.