This story appeared in Bank Digest.
The Federal Reserve Board has approved a final rule, with the Federal Deposit Insurance Corp., that implements the resolution plan requirements in the Dodd-Frank Act. The rule requires bank holding companies with assets of $50 billion or more and nonbank financial firms designated by the Financial Stability Oversight Council for supervision by the Fed to submit resolution plans annually to the Fed and FDIC. The plans must describe the company's strategy for rapid and orderly resolution in bankruptcy during times of financial distress. The rule takes effect Nov. 30, 2011. However, resolution plans are to be submitted on a staggered basis, based principally on the size of the company.