The Federal Reserve Board and the Federal Deposit Insurance Corporation have announced an extension of the deadline for certain large financial institutions to submit their resolution plans. Instead of the original deadline of July 1, 2024, these companies now have until March 31, 2025.
According to the law, specific large financial institutions must regularly submit resolution plans, also known as “living wills,” to the agencies. These plans outline how the company intends to handle financial distress or failure in an organized manner.
Last year, the agencies sought public input on proposed guidance for addressing key challenges in resolution plans for these large institutions. They expressed the possibility of extending the submission date to allow sufficient time for the finalized guidance to be incorporated. The public comment period concluded on November 30, 2023, and the agencies are currently finalizing the guidance.
Read the original Federal Reserve release here.