The Federal Reserve and the Federal Deposit Insurance Corporation proposed guidelines Tuesday for the "living will" and resolution mechanism provisions of section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Public comment on the proposal ends on June 10.
The proposal would require each bank holding company with at least $50bn in assets and every non-bank financial company supervised by the Fed to do a strategic analysis to determine how it could be resolved quickly and orderly under the Bankruptcy Code under different stress scenarios so the winding down of operations would not pose wide-ranging risk to the financial system.
Each resolution plan will take an estimated 800 hours of employee time to complete.
The entity would be required to file its first living will with the Fed and the FDIC within 180 days after the rules take effect, and to re-file the plan within 90 days of the end of the business year and within 45 days of a change that would
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