FDIC, Fed extend comment period on proposed living will guidance
On April 27, the FDIC and the Federal Reserve Board announced a 30-day extension to the comment period for the agencies’ proposal to update resolution plan guidance for certain large foreign banking organizations (FBOs). As previously covered by InfoBytes, FBOs are required to submit resolution plans—also known as “living wills”—which detail the strategic plans for their U.S. operations and subsidiaries for rapid and orderly resolution in bankruptcy in the event that the banks fail or fall under material financial distress. The proposed guidance, issued in March, focuses on the FBOs’ derivatives and trading activities and payment, clearing, and settlement activities, and provides additional resolution plan expectations. Comments will now be accepted through June 4. Due to the Covid-19 pandemic, the agencies also state that other upcoming deadlines associated with the resolution planning process may be adjusted.