Monday was the deadline for the nation's largest banks to submit their resolution plans to the ""FDIC"":http://www.fdic.gov/ and the ""Federal Reserve"":http://www.federalreserve.gov/ for review. A portion of the plans designated for public view will be released by close of business Tuesday.[IMAGE]
The Federal Reserve and FDIC will review the plans for completeness within 60 days and then will begin reviewing the plans for compliance.
The resolution plans are a requirement of Dodd-Frank and apply to all ""bank holding companies with total consolidated assets of $50 billion or more and nonbank financial companies designated by the Financial Stability Oversight Council,"" according to a joint press release from the FDIC and the Federal Reserve.
The financial entities must set forth in their resolution plans their ""strategy for rapid and orderly resolution under the Bankruptcy Code in the event of material financial distress or failure of the company,"" according to the press release.
Monday's deadline applies to all U.S. bank holding companies with at least $250 billion in total nonbank assets and to foreign bank holding companies that have at least $250 billion in nonbank assets in the U.S. Other banks will be required to submit their resolution plans at a later date.
Banks that fall into this category include Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and UBS.
Part of the information in the plans will remain confidential, and part will be open to the public. The public portion will reveal information, including ""a description of the company's core business lines and financial information regarding assets, liabilities, capital, and major funding sources.""