Two federal banking regulators found deficiencies with the sale of derivatives in the resolution plans of Bank of America, Goldman Sachs, and JPMorgan Chase, while the regulators disagreed on the severity of an issue with Citigroup’s plan.
The Federal Deposit Insurance Corporation (FDIC) and Federal Reserve Board conducted reviews of the resolution plans for the eight largest and most complex U.S. banks. The reviews found no weaknesses with the plans from Bank of New York Mellon, Morgan Stanley, State Street, and Wells Fargo. Resolution plans “describe a bank’s strategy for orderly resolution in bankruptcy in the event of its material financial distress or failure,” the agencies said Friday in a joint press release.
