FDIC, Fed seek comment on disaster planning for big banks
The Federal Deposit Insurance Corp. and Federal Reserve Board are now accepting comments on a new Dodd-Frank Wall Street Reform Act rule that would require banks and financial firms with $50 billion or more in assets to submit annual resolution plans and quarterly credit exposure reports. Comments on the proposal will be accepted through June 10, 2011. Under the rule, banks and financial firms classified as significant would have to submit resolution plans on an annual basis. In those plans, firms would have to outline in detail the company's strategy for rapid bankruptcy in times of significant stress. The bank will also need to provide a description on how that oversight fits into the company's overall structure, the Fed said. "In addition, it would be required to include a detailed listing and description of all significant interconnections and interdependencies among major business lines and operations of the company that, if disrupted, would materially affect the funding or operations of the company or its major operations," the Federal Reserve said in a statement. Meanwhile, in the proposed quarterly credit exposure reports, the firms would outline the extent of the company's credit exposure to other financial institutions and "the nature and extent of credit exposure by other large financial companies to the company," the Fed said. Write to Kerri Panchuk.