FDIC Issues Guidance for the Resolution Plans of Large Banks — 2014-12-17

The Federal Deposit Insurance Corporation (FDIC) issued guidance for resolution plans that insured depository institutions with assets greater than $50 billion must submit periodically to the FDIC. These plans are required by an FDIC rule approved in January 2012 and complement those required from certain entities such as covered bank holding companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The FDIC's rule requires each covered institution to provide a resolution plan that should enable the FDIC as receiver under the Federal Deposit Insurance Act to resolve the institution in an orderly manner that enables prompt access of insured deposits; maximizes the return from the failed institution's assets; and minimizes losses realized by creditors and the Deposit Insurance Fund. Under the guidance, a covered institution must provide a fully developed discussion and analysis of a range of realistic resolution strategies.