FDIC Chair Jelena McWilliams stated that the FDIC plans to streamline resolution (i.e., living will) requirements for U.S. global systemically important banking organizations ("GSIBs") and regional banks.
In remarks before the 2018 Annual Conference of The Clearing House and Bank Policy Institute, Ms. McWilliams said that the failure of financial institutions is a critical part of the market and that the goal is to ensure that failure occurs in the least disruptive manner possible (i.e., without taxpayer bailouts or systemic market failure). In order to best achieve this goal, Ms. McWilliams said the priority is to take steps to "facilitate orderly resolution of . . . firms in bankruptcy."
According to Ms. McWilliams, the FDIC intends to:
- support amendments to the Bankruptcy Code to make the process "more tailored [and] transparent" for large financial institutions;
- consider reducing the cost and unnecessary burdens of resolution planning regulations;
- improve transparency of the resolution plan review process under Section 165(d) of Dodd-Frank, with guidance expected to be finalized in the "near-term";
- revisit the $50 billion insured depository intuitions rule threshold, with an Advanced Notice of Proposed Rulemaking expected to be issued in the "coming months"; and
- finalize June 2018 proposed guidance for domestic GSIBs.
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