Agencies Propose Significant Changes to Resolution Planning Requirements
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Key takeaways:
- The Federal Reserve Board (“FRB”) and the Federal Deposit Insurance Corporation (“FDIC”) recently released their anticipated proposal to revise the regulations implementing the resolution planning requirements of section 165(d) of the Dodd-Frank Act.
- The proposal would revise the resolution planning rules applicable to certain domestic and foreign firms (“covered companies”) to reflect resolvability improvements identified over the past eight years and as a response to the Economic Growth, Regulatory Relief, and Consumer Protection Act (see our prior analysis on the Act). The proposal builds on the FRB’s recent domestic and foreign tailoring proposals to create categories of covered companies that would be subject to different filing frequencies and resolution plan content requirements that would increase in stringency based on the risk profile of the firm (see our prior analyses on the tailoring proposals for domestic firms and foreign firms).
- Separately, the FDIC issued and invited comment on an advance notice of proposed rulemaking regarding potential approaches for revising its rule requiring “covered” insured depository institutions with $50 billion or more in total assets to prepare and submit resolution plans to the FDIC.