Joint Release/Agencies Provide Feedback to Nonbank Firms on Resolution Plans — 2015-07-28

Agencies Provide Feedback to Nonbank Firms on Resolution Plans The Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) on Tuesday provided feedback to three nonbank financial companies regarding their initial resolution plans and guidance to the firms for their upcoming filings. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires that bank holding companies with total consolidated assets of $50 billion or more and nonbank financial companies designated by the Financial Stability Oversight Council as systemically important periodically submit resolution plans to the FDIC and the Federal Reserve. Each plan must describe the company's strategy for rapid and orderly resolution under the U.S. Bankruptcy Code or other applicable insolvency regime in the event of material financial distress or failure of the company. Three nonbank financial firms, American International Group, Inc., Prudential Financial, Inc., and General Electric Capital Corporation (GECC), filed initial resolution plans in July 2014.