Key Takeaways from Regulatory Guidance to First-Round Filers of U.S. Resolution Plans
April 23, 2013
On April 15, 2013, the Federal Reserve Board and the Federal Deposit Insurance Corporation released long-awaited guidance on the 2013 Dodd-Frank Section 165(d) resolution plan submissions for institutions that filed their first resolution plans in 2012. The guidance represented the first significant formal feedback on the resolution plans that first-round filers submitted in July 2012. In addition to providing brief guidance on how institutions should address the addition of “adverse” and “severely adverse” economic scenarios required by the Dodd-Frank Section 165(d) resolution planning rule, the guidance spells out significant additional content requirements based on the regulators’ review of the initial plan submissions. To provide first-round filers time to address the new guidance, the regulators extended the filing deadline for these 2013 submissions from July 1 to October 1, 2013. The regulators have indicated that the guidance does not apply to second- and third-round filers filing their initial plans in 2013. Nevertheless, the guidance provides significant insights into the regulators’ concerns and priorities, both in terms of the contents of the plans and the form in which the regulators would prefer they be presented. The attached memorandum highlights key points of interest in the release, including its potential implications for second- and third-round filers.
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