The Treasury Department tonight issued a 150-page report making dozens of recommendations for how Congress and regulatory agencies can streamline bank regulation in a way that promotes economic growth.
The FDIC and Federal Reserve announced today that they had reviewed resolution plans submitted in December 2015 by 16 regional and credit card banks and that none were found “not credible” or inadequate to facilitate an orderly resolution under the Bankruptcy Code.
The Federal Reserve and FDIC today announced that they are delaying the deadline to file resolution plans, or “living wills,” from Dec. 31, 2016, to Dec. 31, 2017, for 36 large banking organizations and two systemically important nonbanks.
In the latest round of public feedback on the “living wills” or resolution plans that the largest banks file to demonstrate they can be wound down in an orderly way, the Federal Reserve and FDIC today deemed the plans filed by Bank of America, the Bank of New York Mellon, J.P. Morgan Chase, State Street and Wells Fargo “not credible” or inadequate to facilitate an orderly resolution under the Bankruptcy Code.
A lack of transparency surrounding the process by which federal regulators assess the “living wills” submitted by the nation’s largest banks could undermine public and market trust in the resolution plans and limit accountability on the part of regulators, the Government Accountability Office said in a report released today.
In a speech today at a Washington, D.C., think tank, FDIC Chairman Martin Gruenberg described the “impressive” progress the FDIC and Federal Reserve have made toward building a regulatory structure to resolve a failing systemically important financial institution.