Companies that submitted initial resolution plans last year to the Federal Reserve Board and the Federal Deposit Insurance Corp. under Dodd-Frank have been offered more detailed instructions for when they submit their second drafts of their living wills.
"Eleven companies and their subsidiaries were the first test cases in 2012 of federal efforts to get behemoths to plot out how they would be wound down in a failure and strategize on how to make their operations more resolvable. But the early regulatory guidelines for submitting the initial drafts were general," writes American Banker's Joe Adler.
The submission guidelines were general for the first round, but regulators have offered more details for the eleven firms for their second drafts.
Among details now sought by regulators from firms is how they would address impediments to a wind-down and to follow the series of steps required for bankruptcy.
For the full piece see "Regulators Mandate New Rules for Living Will Updates" (may require subscription).