Fed, FDIC Release Public Bank Resolution Plans

Fed, FDIC Release Public Bank Resolution Plans

Publisher:Sajad Hayati

At a Glance

  • Federal regulators have released public resolution plans for 15 major banking organizations.
  • These plans, mandated by the Dodd-Frank Act, detail how banks would be resolved in bankruptcy.
  • Capital One’s interim plan update was also released post-Discover acquisition.
  • The public sections of these critical financial documents are now accessible online.

Federal Regulators Publish Key Bank Resolution Plans

The Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) have jointly made public the non-proprietary sections of resolution plans for fifteen significant banking organizations. This cohort includes five large domestic financial institutions and ten foreign banking entities. These institutions were required to submit these comprehensive plans by October 1, 2025, outlining their strategies for an orderly resolution should they face severe financial distress or failure.

Understanding the Purpose of Resolution Plans

Commonly referred to as living wills, these detailed resolution plans are a direct requirement stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act. Their primary objective is to establish a clear framework for managing and resolving a financial institution under bankruptcy proceedings if it encounters material financial instability. The confidential plans submitted by each firm contain a public section that offers a summary of crucial aspects of their resolution strategy, ensuring a degree of transparency.

Capital One’s Interim Plan Following Acquisition

In addition to the routine submissions, regulatory agencies also published a public summary of Capital One Financial Corporation’s interim update to its resolution plan. This action follows Capital One’s recent acquisition of Discover. Consequently, Capital One is now tasked with filing a full, updated resolution plan, including a public section, by July 1, 2026.

Accessing Public Resolution Plan Documents

The public sections of these resolution plans, along with the interim update from Capital One, are now available for public review. Interested parties can access these important documents by visiting the official websites of the:

These resources are designed to enhance transparency regarding the strategies large banking organizations employ to maintain financial stability within the system.

Expert Summary

The joint release of public resolution plans by the Federal Reserve and FDIC underscores a commitment to systemic financial stability. These living wills provide essential clarity on the procedural steps for winding down large banks, a mandate established by the Dodd-Frank Act. The inclusion of Capital One’s interim update highlights the evolving nature of regulatory oversight, especially in response to significant corporate changes such as mergers.

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