As the Basel, Switzerland-based Financial Stability Board begins the process of evaluating whether post-financial crisis regulatory efforts are reducing the systemic and moral hazard risks associated with systemically important banks, ABA said “that the prospect of TBTF with regard to banking organizations has been addressed in the United States by these regulatory actions and the banking industry’s concomitant efforts.”
ABA, along with the Bank Policy Institute and the Securities Industry and Financial Markets Association, today expressed its support for a proposal from the Federal Reserve and the FDIC, as well as an advance notice of proposed rulemaking from the FDIC, to tailor their resolution planning frameworks for large banking companies and large insured banks.
The FDIC today sought public feedback on potential changes to its resolution planning framework for financial companies’ bank subsidiaries with over $50 billion in assets.
The Federal Reserve today proposed several changes to its resolution planning framework for large banking companies, as well as to the regulatory capital requirements for U.S. subsidiaries of foreign banking organizations.
The FDIC and the Federal Reserve announced today that they have reviewed resolution plans submitted in 2017 by 14 regional and credit card banks and did not identify any shortcomings.
Commenting on the current state of large bank resolution planning at an industry event today, FDIC Chairman Jelena McWilliams today said that the FDIC is considering several policy changes to “strengthen and streamline” the large bank resolution planning process.
As they implement S. 2155, the Federal Reserve and the FDIC today said that they are beginning the process of determining which financial firms with assets of less than $250 billion will be subject to the requirement to submit resolution plans, also known as living wills.
The Federal Reserve and the FDIC today requested comments on proposed guidance for the eight global systemically important banks participating in the agencies’ program for resolution plan, commonly called “living wills.”
In remarks at a Harvard Law School event today, Federal Reserve Vice Chairman for Supervision Randal Quarles signaled that the Fed and the FDIC will revisit the capital and liquidity requirements in place for the largest U.S. and foreign firms and will seek public input on current “living will” guidance.
Testifying before the House Financial Services Committee this morning, Federal Reserve Vice Chairman for Supervision Randal Quarles outlined several ways in which the Fed has already or is in the process of tailoring the post-crisis regulatory framework to promote efficiency, transparency and simplicity.