Banks’ Resolvability Plan Exposed: Regulators Extend Comment Period

Washinton D.C. – In a shocking move, the Federal Reserve Board and the Federal Deposit Insurance Corporation have extended the comment period on an advance notice of proposed rulemaking to enhance regulators’ ability to resolve large banks in an orderly way should they fail. The move comes as regulators scramble to bolster their oversight of the nation’s largest financial institutions.

The advance notice of proposed rulemaking asks for comment on several potential new requirements and resources that could be used for an orderly resolution of large banking organizations, including a long-term debt requirement. The extension of the comment period was announced in a joint release by the Federal Reserve Board and the Federal Deposit Insurance Corporation.

The original comment period was set to expire on December 23, 2022, but regulators have now extended it until January 23, 2023. The move is seen as a major development in the ongoing effort to strengthen regulatory oversight of the nation’s largest financial institutions.

According to sources, the advance notice of proposed rulemaking seeks to address concerns that regulators may not have the necessary tools to resolve large banks in an orderly way should they fail. The proposed requirements and resources are aimed at ensuring that regulators have the necessary authority to wind down large banking organizations without causing widespread disruption to the financial system.

The extension of the comment period is seen as a positive development, allowing interested parties more time to analyze the issues and prepare their comments. The move is also seen as a sign of the regulators’ commitment to strengthening their oversight of the nation’s largest financial institutions.

As the nation’s largest financial institutions continue to grow in size and complexity, regulators are under increasing pressure to ensure that they have the necessary tools to prevent and respond to potential crises. The extension of the comment period on the advance notice of proposed rulemaking is a major step in that direction.