The Federal Reserve Board has released additional guidance for the nation’s largest banks regarding its expectations for their “living wills,” the worst-case-scenario resolution plans demanded of them under the Dodd-Frank Act.
The new supervisory guidance, issued to eight domestic bank holding companies (Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street, and Wells Fargo), cites “the importance of robust systems to manage collateral, information, and payments, clearing, and settlement activities” and stresses the importance of adequate liquidity and funding arrangements during times of stress. These expectations will be incorporated into the Fed’s ongoing supervisory assessments of recovery and resolution preparedness.
