‘Living wills’ deadline extended 1 year for 14 firms

Agencies indicate work in response to new reg relief law proceeding

Fourteen large banking firms received an extra year to file their living wills to allow more time for the federal banking agencies to provide feedback on the companies’ last submissions, and for the companies to produce their next submissions.

The two agencies also noted they are developing plans to implement provisions related to living wills – and other areas – under the regulatory relief legislation enacted in late May (the Economic Growth, Regulatory Reform, and Consumer Protection Act [EGRRCPA], S.2155).

In a joint release, the Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) said they were extending the deadline to Dec. 31, 2019, for filing the firms’ “resolution plans,” also known as living wills. The plans, the agencies note, “describe an institution’s strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure.”

The 14 companies are: Ally Financial Inc., American Express Company, BB&T Corporation, Capital One Financial Corporation, Citizens Financial Group, Fifth Third Bancorp, Huntington Bancshares Incorporated, KeyCorp, M&T Bank Corporation, Northern Trust Corporation, Regions Financial Corporation, SunTrust Banks, Inc., The PNC Financial Services Group, Inc., and U.S. Bancorp.

With respect to compliance with provisions of other areas of the ECRRPCA legislation (which President Donald Trump signed into law May 24), the agencies said they would announce “further actions at a later date.”

The agencies also noted that enactment of ECRRPCA means that “firms with less than $100 billion in total consolidated assets are no longer subject to resolution plan requirements.”

Separately, the agencies added, under the new law, over the next 18 months the Federal Reserve Board “will determine which firms with more than $100 billion but less than $250 billion in total consolidated assets will be subject to the resolution plan requirement moving forward.”

Regulators extend the next resolution plan filing deadline for 14 domestic firms