Navigating the U.S. Living Wills Requirements
A.B.A. Banking L. Comm J.
Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”)2 requires large bank holding companies and systemically important nonbank financial companies to prepare plans for their rapid and orderly resolution under the Bankruptcy Code in the event of material financial distress or failure. The recent release of two rules on resolution planning by the FDIC and the Federal Reserve means that the basic contours of the U.S. regulatory framework for resolution plans are now known. In this article, we have focused on how certain aspects of the rules and their implementation by regulators are likely to have a different impact on regional bank holding companies and certain foreign banking organizations, than on other firms subject to the requirements.