Joint Release/Agencies Invite Comment on Updates to Resolution Plan Guidance for Large Foreign Banks — 2020-03-06

Agencies Invite Comment on Updates to Resolution Plan Guidance for Large Foreign Banks The Federal Deposit Insurance Corporation and the Federal Reserve Board on Friday invited public comment on proposed changes to the guidance for resolution plans submitted by large foreign banks, including plans that are due by July 1, 2021. The updates focus on the agencies' expectations around a firm's derivatives and trading activities and payment, clearing, and settlement activities. 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. The resolution planning process helps ensure that a firm's failure would not have serious adverse effects on the financial stability of the United States. For foreign banking organizations, resolution plans are focused on their U.S. subsidiaries and operations.