Regulators Approve Living Wills for Largest US Banks
US regulators approved resolution plans for the largest banks. They confirmed that previous concerns regarding derivatives at major lenders have been resolved.
The Federal Reserve and FDIC approved resolution plans for the 8 largest banks and 56 foreign firms in the United States on the afternoon of May 22. Regulators found no shortcomings in the "living wills," which detail how banks would navigate bankruptcy without taxpayer bailouts. This approval removes regulatory uncertainty for the banking sector following 2024 warnings regarding complex derivatives portfolios.
The Federal Reserve and Federal Deposit Insurance Corporation (FDIC) confirmed that Bank of America, Goldman Sachs, JPMorgan Chase, and Citigroup addressed previous concerns regarding their unwinding strategies. These plans are mandatory under post-2008 financial crisis regulations.
