Agencies Find No Deficiencies in Resolution Plans from the Largest Banks; Find Shortcomings for Several Firms — 2019-12-17

The Federal Reserve Board and Federal Deposit Insurance Corporation announced Tuesday that they did not find any "deficiencies," which are weaknesses that could result in additional prudential requirements if not corrected, in the resolution plans of the largest and most complex domestic banks. However, plans from six of the eight banks had "shortcomings," which are weaknesses that raise questions about the feasibility of a firm's plan, but are not as severe as a deficiency. Plans to address the shortcomings are due to the agencies by March 31, 2020. Resolution plans, commonly known as living wills, describe a bank's strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure.