Contributed by Kathlene Burke
The Board of Governors of the Federal Reserve System (the “Board”) and the Federal Deposit Insurance Corporation (the “Corporation”, and together with the Board, the ‘‘Agencies’’) published notice in the Federal Register that they are adopting the final rule to implement the requirement in a section of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ‘‘Dodd-Frank Act’’) regarding resolution plans, which are commonly referred to as “living wills”. The Dodd-Frank Act section requires each nonbank financial company designated by the Financial Stability Oversight Council (the ‘‘Council’’) for enhanced supervision by the Board and each bank holding company with assets of $50 billion or more to report periodically to the Board, the Corporation, and the Council the plan of such company for rapid and orderly resolution in the event of material financial distress or failure. The rule will become effective on November 30, 2011. On September 14, 2011, we posted a summary of the rule, which can be accessed by clicking here. The final rule as published in the Federal Register can be accessed by clicking here.