"Living Wills" The Legal Regime for Constructing Resolution Plans for Certain Financial Institutions

Format:

Book

Government document

Author/Creator:

Library of Congress. Congressional Research Service. American Law Division

Language:

English

Subjects (All):

Board of Governors of the Federal Reserve System (U.S.).

Economic policy.

Physical Description:

1 online resource

Contained In:

ProQuest U.S. Congressional Research Digital Collection

Place of Publication:

[United States] [publisher not identified] 2014

Summary:

Reviews requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act or DFA) for financial institutions to provide resolution plans, known as "living wills," to the Board of Governors of the Federal Reserve Board (FRB) and the FDIC detailing how they could be quickly resolved in an orderly fashion under the U.S. Bankruptcy Code or other applicable insolvency regime, in the event of bank failure. Reviews legal structure of living will requirements under DFA, pursuant to both DFA and regulations and guidance issued jointly by the FRB and FDIC. Explains Aug. 2014 joint announcement by FRB and FDIC regarding inadequacies of the 2013 living wills filed by the 11 largest, most complex financial institutions in the country. Examines some of the steps that these institutions might voluntarily take to improve their resolvability, including strategic divestiture, legal reorganization, amendment of default trigger provisions of qualified financial contracts, and increasing their long-term unsecured debt as a proportion of their assets

Notes:

CRS Report

Record is based on bibliographic data in ProQuest U.S. Congressional Research Digital Collection (last viewed Jan. 2014). Reuse except for individual research requires license from ProQuest, LLC

Vendor supplied data

Other Format:

Microfiche version Library of Congress. Congressional Research Service. American Law Division. "Living Wills"

Publisher Number:

CRS-2014-AML-0561

Access Restriction:

Restricted for use by site license