On January 15, 2014, the Federal Reserve Board and the FDIC made portions of resolution plans, for firms with generally less than $100 billion in qualifying nonbank assets, publically available. Certain banking organizations with total consolidated assets of $50 billion or more and nonbank financial companies designated for enhanced prudential supervision by the Financial Stability Oversight Council are required to periodically submit resolution plans to the Federal Reserve Board and the FDIC. A resolution plan contains both a public and confidential section describing the company's strategy for rapid and orderly resolution in the event of material financial distress or failure of the company.
The FDIC also released the public sections of the recently filed resolution plans of 22 insured depository institutions, the majority of which are subsidiaries of bank holding companies. The insured depository institution plans are mandated by a separate regulation issued by the FDIC requiring a covered insured depository institution with assets greater than $50 billion to submit a plan under which the FDIC might resolve the institution under the Federal Deposit Insurance Act.
The public portions of resolution plans required by the Federal Reserve Board are available at: http://www.federalreserve.gov/bankinforeg/resolution-plans.htm and the public portions of resolution plans required by the FDIC are available at: https://www.fdic.gov/regulations/reform/resplans/ .
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
