U.S. bank regulators published plans today that 17 major financial institutions would expect to follow if they were to run into trouble.
In the aftermath of the global financial crisis, one of the reforms adopted by regulators is a requirement that systemically-important financial firms submit resolution plans to the U.S. Federal Reserve Board and the Federal Deposit Insurance Corp. (FDIC). The plans set out the companies’ strategies for their rapid and orderly resolution under U.S. bankruptcy law if the company was to fail, or run into “material financial distress.”
Today, the regulators released the portions of those resolution plans that are public information.
Thirteen of the 17 firms whose plans were released have submitted previously at least one plan. This includes: Bank of America Corp., Bank of New York Mellon Corp., Barclays plc, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group, HSBC Holdings plc, JPMorgan Chase & Co., Morgan Stanley, State Street Corp., UBS AG, and Wells Fargo & Co.
The initial plans of four firms — AIG, Prudential Financial, Inc., GE Capital Corp. and Bankia SA — were also released.
And, the regulators also granted requests for extensions from BNP Paribas SA and Royal Bank of Scotland Group plc. Their plans are now due Oct. 1.