Regulators publish 'living will' portions for largest banks
WASHINGTON — The Federal Reserve and the Federal Deposit Insurance Corp. have released the public portions of updated resolution plans for eight of the nation’s largest banks.
Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and Wells Fargo all filed the reports with the regulators by July 1. As required by the Dodd-Frank Act, the institutions must submit regular plans on how they would be unwound in a failure.
The Fed and the FDIC published the public portions of the living wills on their websites Tuesday.
Resolution plans are split into public and confidential sections. The Fed and the FDIC review both parts in order to determine whether the firms could be resolved credibly in bankruptcy without causing harm to the financial system.
The eight U.S.-based "global systemically important banks," or G-SIBs, currently file living wills annually. But under a new proposal issued in April, those banks would be required to submit resolution plans every two years, alternating between full and “targeted” plans.
A full living will would be the same comprehensive plans banks are used to filing today, while a targeted plan would only include the “core elements” of a full plan, such as capital and liquidity, as well as changes resulting from new regulatory policy or an information request by the agencies.