Deadlines for the next filing of resolution plans – “living wills” – for four foreign banks and one “designated nonbank” have been extended by one year, the Federal Reserve and Federal Deposit Insurance Corp. (FDIC) said Thursday, to give the agencies more time to provide to the financial firms feedback on their last submissions – as well as more time for the next submissions.
Additionally, the FDIC said it was extending the filing deadline for all insured depository institution living will submissions to no sooner than July 1, 2020.
The agencies said the deadline extensions are consistent with the time provided to other resolution plan filers to allow at least two years between resolution plan submissions.
The central bank and federal insurer of bank deposits said, in a release, that living wills for four foreign banking organizations (FBOs) – which are Barclays PLC, Credit Suisse Group AG, Deutsche Bank AG, and UBS AG – are due by July 1, 2020. Previously, the plans had been due one year earlier (July 1, 2019).
The plan for the designated nonbank – Prudential Financial Inc. – will be due Dec. 31, 2019. The plan previously had been due at the end of this year (Dec. 31, 2018).
The agencies noted that living wills, required by the Dodd-Frank Act, must describe the company’s strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure of the company. “For FBOs, resolution plans are focused on their U.S. operations,” the agencies stated in their joint release.
Separately, the FDIC said the resolution plans for depository institutions (now due by June 2020) are required by the agency’s regulation and are designed to enable the FDIC, as receiver, to resolve the institution under the Federal Deposit Insurance (FDI) Act “in a way that provides depositors timely access to insured deposits, maximizes net present value return, and minimizes creditor losses.”
Agencies extend deadline for certain resolution plan submissions