This story appeared in Bank Digest.
The Federal Reserve Board and the Federal Deposit Insurance Corporation have made determinations and provided firm-specific feedback on the 2015 resolution plans of eight systemically important domestic banking institutions, according to a joint press release issued by the agencies. The resolution plans are required of certain companies under the Dodd-Frank Act and should describe each company's strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure of the company.
The agencies jointly determined that the resolution plans of several companies were not credible or would not facilitate an orderly resolution under the U.S. Bankruptcy Code. The agencies issued joint notices of deficiencies to these firms, and the companies must remediate the deficiencies by October 1, 2016.
According to the release, the deadline for the next full plan submission for all eight domestic systemically important financial institutions is July 1, 2017. The Fed and the FDIC have issued "Resolution Plan Assessment Framework and Firm Determinations (2016)," which explains the resolution planning requirement and provides additional information on both the agencies' determinations and their processes for reviewing the plans. In addition, the agencies have issued new guidance for the July 2017 resolution plan submission of all firms.
The Fed has also released the feedback letters issued to each firm: