Federal Reserve & FDIC Approve Living Will Plans Of Major Banks

The Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have approved resolution plans submitted by the largest U.S. banks and several foreign banking organisations operating in the country.

The regulators said they did not identify shortcomings in the latest “living will” submissions from eight major U.S. banks and 56 foreign banking organisations. The plans outline how banks could be resolved through bankruptcy without disrupting the financial system. The agencies also said earlier concerns raised in 2024 regarding plans submitted by Bank of America, Goldman Sachs, JPMorgan Chase, and Citigroup had been addressed.

Last year, regulators had flagged issues related to how the banks planned to unwind derivatives portfolios during a bankruptcy process. The updated submissions were reviewed and accepted by both agencies.