FDIC Unveils Resolution Plans for Nine Major Banks

The Federal Deposit Insurance Corporation (FDIC) has made waves in the banking sector by releasing the public sections of resolution plans for nine major domestic banks. Due by December 1, 2023, these documents outline how the FDIC would manage the liquidation or purchase-and-assumption transaction of these institutions if they were to face insolvency.

Under FDIC regulations, each covered institution must submit a resolution plan detailing how the agency as receiver could resolve the bank under the Federal Deposit Insurance Act. Key objectives include ensuring depositors have timely access to their insured deposits, maximizing asset returns for creditors, and minimizing losses.

The public sections of these resolution plans are now accessible on the FDIC’s website, fostering transparency in the financial sector. These documents provide insight into how the FDIC would handle potential bank failures, which is crucial for maintaining confidence in the stability of our banking system.

Resolution plans are divided into public and confidential sections, with the former being available to the public. This move by the FDIC reflects a commitment to transparency and accountability in the financial industry. The detailed analysis included in these plans could also serve as a template for other institutions looking to improve their own resolution readiness.

With this release, the FDIC continues its efforts to mitigate risks associated with bank failures and safeguard the interests of depositors. The public sections of these resolution plans are now available for review on the FDIC’s website.

For further information:

• FDIC Contact:
• Brian Sullivan
  202-412-1436

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