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The Federal Reserve and the Federal Deposit Insurance Corp. said Friday they had identified deficiencies in JPMorgan Chase's so-called living will plans (New York Stock Exchange: JPM), Goldman Sachs (New York Stock Exchange: A), American bank (New York Stock Exchange: PAC(Citigroup)New York Stock Exchange: CAccording to what was reported by the media on Friday.
the A bank's living will is a detailed plan to liquidate itself in the event of a catastrophic failure. The largest banks in the United States must develop such contingency plans to protect taxpayers and the financial system as a whole from the repercussions that may result from their collapse. The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve recertify banks every two years. Also note that these default liquidation plans were required under the Dodd-Frank legislation passed after the 2008 financial crisis.
“For the four banks with identified deficiencies, the letters describe the specific weaknesses that led to the deficiencies and the remedial actions required by the agencies,” the Federal Reserve and the FDIC said. He said In a joint statement.
However, regulators found no weakness in the plans of Wells Fargo (WFC), Morgan Stanley (MS), State Street (STT), and Bank of New York Mellon (BK).
Regulators noted that lenders with weaknesses will have to address them in new resolution plans scheduled for July 1, 2025. Identifying a “flaw” does not trigger a penalty from banks.
Earlier Friday, the Financial Times reported that most FDIC board members found Citi's plan C living will “deficient,” a downgrade from 2022, when the agency and the Federal Reserve approved the lender's plan but They described his control as a “flaw.”