Joint Release/Federal Reserve and FDIC Announce Resolution Plan Determinations for Four Foreign-based Banks and Finalize Guidance for Eight Domestic Banks — 2018-12-20

Federal Reserve and FDIC Announce Resolution Plan Determinations for Four Foreign-based Banks and Finalize Guidance for Eight Domestic Banks The Federal Reserve Board and the Federal Deposit Insurance Corporation on Thursday announced that the resolution plans of four foreign-based banks had weaknesses, but did not have "deficiencies," which are weaknesses severe enough to result in additional prudential requirements if not corrected. The agencies determined that the plans of the four firms--Barclays, Credit Suisse, Deutsche Bank, and UBS--have "shortcomings," which are less severe weaknesses that require additional work in their next plan. These shortcomings in the four firms' plans include weaknesses in how each firm communicates and coordinates between its U.S. operations and its foreign parent in stress. Credit Suisse also had a shortcoming related to estimating the liquidity needs of its U.S. intermediate holding company in a resolution.