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Regulators find shortcomings in resolution plans of 6 large US banks

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Regulators find shortcomings in resolution plans of 6 large US banks

The Federal Reserve Board and the Federal Deposit Insurance Corp. found no deficiencies in the resolution plans, or "living wills," of the largest and most complex domestic banks.

Resolution plans from six of the eight banks, however, had "shortcomings," or weaknesses that raise questions about the feasibility of a company's plan but are not as severe as a deficiency. Plans to address the shortcomings are due to the regulators by March 31, 2020.

In the resolution plans of Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc., Morgan Stanley, State Street Corp. and Wells Fargo & Co., the Fed and the FDIC found shortcomings related to the ability of the companies to reliably produce, in stressed conditions, data that is needed to execute their resolution strategy. Examples include measures of capital and liquidity at relevant subsidiaries.

No shortcomings were found in the plans from Goldman Sachs Group Inc. and JPMorgan Chase & Co.

Additionally, the regulators announced that Bank of America, Goldman Sachs, Morgan Stanley and Wells Fargo had addressed prior shortcomings identified in their December 2017 resolution plan review.