Public sections of resolution plans for the eight largest and “most complex” domestic banking organizations, as well as those for 56 foreign banking organizations, were released Tuesday by two federal banking agencies.
The Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) said the plans include those for Wells Fargo & Co., Morgan Stanley, JPMorgan Chase and Co., State Street Corp., Goldman Sachs Group, Inc., Bank of America Corp., Citigroup, and Truist Bank.
According to the agencies, the bank organizations were required to submit resolution plans (or “living wills”) by July 1. The plans are mandated by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
These plans, the agencies said, describe a banking organization’s strategy for orderly resolution under bankruptcy in the event of material financial distress or failure. “By regulation, resolution plans must be divided into public and confidential sections. To foster transparency, the agencies have required each banking organization’s public section to summarize certain elements of the resolution plan,” the agencies said.
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