The FDIC Board of Directors has adopted a final rule setting forth the requirements for the “living wills” to be filed by large bank holding compa-nies (“BHCs”) and systemically important nonbank financial companies under Section 165(d) of the Dodd-Frank Act (“Act”). With limited but important modifications, the final rule generally follows the rule proposed in April 2011. The final rule does reflect the agency’s responsiveness to many comments made by the public, by adding greater flexibility to the require-ments based on the size and nature of the covered company. The FRB also must adopt the final rule. That action has not been scheduled as of this date. See our article in American Banker, “Living Wills Could Pit U.S. Stability Against Duty to Shareholders,” August 29, 2011.
The FDIC Board of Directors also approved an interim final rule setting forth the requirements for the resolution plans to be prepared by large insured depository institutions. The interim final rule was modified from the proposal first put forward in May 2010 in order to coordinate its requirements more closely with the Act’s living will requirements.
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