1) Aug 29 [press release] -- The Federal Deposit Insurance Corporation and Federal Reserve Board today invited public comment on proposed guidance to help certain large bank holding companies further develop their Dodd-Frank Act Title I resolution plans.
These resolution plans, also known as "living wills," describe a bank holding company's strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure.
The guidance would generally apply to bank holding companies and foreign banking organizations with more than $250 billion in total assets but that are not the largest and most complex companies, which are already subject to guidance on resolution planning. The guidance would address the specific characteristics of, and risks posed by, this group of companies.
The guidance is organized around key areas of potential vulnerability, such as capital, liquidity, and operational capabilities that could be needed in resolution. Distinct from the guidance to the largest and most complex companies, the proposal would provide agency expectations for both single point of entry and multiple point of entry strategy needs, which are different strategies companies may adopt for their rapid and orderly resolution. It also would propose that foreign banking organizations develop their U.S. resolution strategies to be complementary to their global resolution plans.
The proposed guidance will be published in the Federal Register, with comments due by November 30, 2023.
FRB resolution plans:
https://www.federalreserve.gov/supervisionreg/resolution-plans.htm
FDIC resolution plans:
https://www.fdic.gov/resources/resolutions/resolution-authority/resplans/index.html
Fact sheet:
https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230829b3.pdf
Domestic filers draft guidance:
https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230829b1.pdf
Foreign filers draft guidance:
https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20230829b2.pdf
Press release:
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230829b.htm
2) Sept 19 -- Guidance for Resolution Plan Submissions of Domestic Triennial Full Filers
The Board and the FDIC (together, the agencies) are inviting comments on proposed guidance for the 2024 and subsequent resolution plan submissions by certain domestic banking organizations. The proposed guidance is meant to assist these firms in developing their resolution plans, which are required to be submitted pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended (the Dodd-Frank Act), and the jointly issued implementing regulation (the Rule). The scope of application of the proposed guidance would be domestic triennial full filers (specified firms or firms), which are domestic Category II and III banking organizations. The proposed guidance is based on the agencies' review of the specified firms' 2021 and prior resolution plan submissions, as well as the agencies' experiences resolving several large domestic banking organizations, and would describe the agencies' expectations regarding several aspects of the specified firms' plans for an orderly resolution under the U.S. Bankruptcy Code. The agencies invite public comment on all aspects of the proposed guidance. Comments must be received by November 30, 2023.
FRN:
https://www.federalregister.gov/d/2023-19267
3) Sept 19 -- Guidance for Resolution Plan Submissions of Foreign Triennial Full Filers
The Board and the FDIC (together, the agencies) are inviting comments on proposed guidance for the 2024 and subsequent resolution plan submissions by certain foreign banking organizations. The proposed guidance is meant to assist these firms in developing their resolution plans, which are required to be submitted pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended (the Dodd-Frank Act), and the jointly issued implementing regulation (the Rule). The scope of application of the proposed guidance would be foreign-based triennial full filers (specified firms or firms), which are foreign-based Category II and III banking organizations, and the guidance, if finalized, would supersede the joint Guidance for Resolution Plan Submissions of Certain Foreign-Based Covered Companies (85 FR 83557 (Dec. 22, 2020) (2020 FBO Guidance)). The proposed guidance is based on the agencies' review of the specified firms' 2021 and prior resolution plan submissions, as well as the agencies' experiences dealing with stress events in the international and domestic banking systems, and would describe the agencies' expectations regarding several aspects of the specified firms' plans for an orderly resolution under the U.S. Bankruptcy Code. The agencies invite public comment on all aspects of the proposed guidance. Comments must be received by November 30, 2023.
FRN:
https://www.federalregister.gov/d/2023-19268