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Part II The US Resolution Regime, 8 Resolution Planning

From: Bank Resolution and Crisis Management: Law and Practice

Simon Gleeson, Randall Guynn

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 26 June 2022

Subject(s):
Deposit insurance schemes — Credit risk — Equity — Claims

This chapter describes the resolution planning process in the United States for liquidating, reorganizing, or otherwise resolving systemically important financial institutions that have reached the point of non-viability. Resolution is the last stage along the full continuum of contingency planning from risk management, to early remediation, to recovery planning, to resolution planning, that is sometimes referred to as a ‘living will’. Activating a resolution plan would be a last resort, when various ex ante solutions designed to reduce the likelihood of failure have been unsuccessful. Preparing and regularly updating a resolution plan is required under Title I, section 165(d) of the Dodd‒Frank Act, which applies to all bank holding companies (BHCs) and foreign banking organizations with assets of $50 billion or more, as well as any non-bank financial institution that has been designated as systemically important.

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