The Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) have made public the sections of resolution plans submitted by major banking organizations. These plans, often referred to as living wills, were required from the eight largest and most complex domestic banks, as well as 56 foreign banking organizations, with a submission deadline of July 1, 2025.
Living wills are mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. They outline how a bank would be resolved in an orderly manner under bankruptcy if it were to experience significant financial distress or failure. Regulations require these plans to have both public and confidential sections. The agencies require that each bank’s public section provides a summary of key elements of its resolution plan to increase transparency.
Additionally, the FDIC has released public sections of separate resolution plans for 12 large insured depository institutions (IDIs). These IDI resolution plans are required under the FDIC’s IDI Rule and are also intended to ensure that the FDIC can efficiently resolve an IDI under the Federal Deposit Insurance Act if it fails.
