Joint Release/Agencies Announced Several Resolution Plan Actions — 2020-12-09

Board of Governors of the Federal Reserve System Joint Release Federal Deposit Insurance Corporation Agencies Announced Several Resolution Plan Actions The Federal Deposit Insurance Corporation and the Federal Reserve Board today announced several resolution plan actions. Resolution plans, commonly known as living wills, must describe the company's strategy for rapid and orderly resolution in bankruptcy in the event of material financial distress or failure of the company. First, the agencies confirmed that weaknesses previously identified in the resolution plans for several large foreign banks—Barclays, Credit Suisse, Deutsche Bank, and UBS—have been remediated. Second, the agencies finalized guidance for the resolution plans of certain large foreign banks. The final guidance modifies the proposed guidance, which was issued in March of this year, in several ways. The agencies tailored their expectations around resolution capital and liquidity, derivatives and trading activity, as well as payment, clearing, and settlement activities.