The largest banks and financial firms will submit blueprints for their dismantling in the event of failure to U.S. regulators by the middle of next year, with later deadlines for smaller institutions.
Federal Deposit Insurance Corp board members voted 3-0 on Tuesday to finalize the living will rule required by the 2010 Dodd-Frank financial oversight law. The rule also has to be approved by the Federal Reserve, which is expected to do so within days.
Bank holding companies and other large financial firms with more than $250 billion in non-bank assets will have to file initial plans by July 1, 2012.
Firms with between $100 billion and $250 billion in non-bank assets will have until July 1, 2013, to file plans. All other companies covered by the rule will have until Dec. 31, 2013. Foreign banks were to be included in the later deadline and would be allowed to submit less-detailed plans.
An initial proposal released in April would have required all plans to be filed
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