OCC proposes dropping its ‘recovery plan’ requirements for big banks

Less than a year after a new rule required more of the U.S.’s biggest banks to draft “recovery” plans in case of failure, the rule is on its way out.

The Treasury Department’s Office of the Comptroller of the Currency (OCC) issued the embattled recovery planning guidelines last week to help banks prevent failures and recover quickly if they run into trouble.

The guidance, whose latest amended version took effect in January, applies to large, insured, national banks, federal savings associations, and federal branches with $100 billion or more in average, total, consolidated assets. The guidance is intended to prevent another collapse of “too big to fail” institutions, such as happened in the 2008 financial crisis.