EDITOR NOTE: Here’s something to seriously think about. Regulatory measures in the financial sector and banking industry are supposedly there to protect customers and depositors like you and me. I suppose that’s why they’re often written in “legalese” or jargon so that the American public can fully understand what it says (because we must all communicate in legalese/jargon on an everyday basis). That’s why some of the most important measures that might affect your financial well-being are buried in volumes of incomprehensible paragraphs or, even better, pages. So the stuff that’s important to you and me can easily be found. If you’ve read our Bank Failure Survival Guide, you’ll surely have recognized the “bail-in” procedure describing how your funds can get frozen in the event of a banking collapse--as the regulators assumed you’ve read it and understood it. Haven’t you? Adding more to the critical information that’s designed to protect you as a depositor, the Fed has released “public sections” describing "resolutions plans” (as we all know what that means) for a number of large banks in the event of bankruptcies. It’s designed for “public consumption,” so you can bet that the regulators want you to read it. And it’s formatted in a way that’s 100% comprehensive. We’re being sarcastic, of course, because the truth behind it is absolutely cynical.
The Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) today released the public sections of eight large domestic firms' resolution plans, which are required by the Dodd-Frank Act and commonly known as living wills.
Resolution plans describe the company's strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure. Eight firms were required to submit targeted resolution plans by July 1: Bank of America Corporation; The Bank of New York Mellon Corporation; Citigroup Inc.; The Goldman Sachs Group, Inc.; JPMorgan Chase & Co.; Morgan Stanley; State Street Corporation; and Wells Fargo & Company.
By regulation, resolution plans must be divided into public and confidential sections. To foster transparency, the agencies have required each firm's public section to summarize certain elements of the resolution plan.
The public sections of the resolution plans are available on the FDIC's and the Federal Reserve's websites.
Original post from Federal Reserve