WASHINGTON, May 22 – Two federal banking agencies have given their approval to emergency shutdown blueprints submitted by America’s biggest financial institutions, outlining procedures for safely dissolving operations during bankruptcy proceedings.
The Federal Reserve and Federal Deposit Insurance Corporation found no deficiencies in these emergency plans, known as “living wills,” from the country’s 8 biggest banks and 56 foreign banking organizations. On Friday, the regulatory agencies also revealed that previously identified problems in submissions from Bank of America, Goldman Sachs, JPMorgan Chase and Citigroup have been properly resolved. These four institutions had received criticism from regulators in 2024 for failing to demonstrate adequate methods for safely dismantling their derivatives portfolios during potential bankruptcy scenarios.
