The Federal Reserve Board issued additional guidance for banks on how to properly re-submit resolution plans required under the Dodd-Frank Act.
The first 11 submissions from banks were reviewed by the Federal Reserve and then sent back to the banks with further instructions on what details should be included in the 2013 resolution plans, the board said Monday.
The Federal Reserve extended the submission deadline to Oct. 1, 2013, pushing it well beyond the previous July 1 deadline.
The new instructions include the need for more information on obstacles to resolvability under the bankruptcy code, such as global issues, financial market utility interconnections and funding and liquidity challenges.
The updated plans are expected to include a more comprehensive process to facilitate a more effective resolution plan in case a bank needs to be unwound during times of financial stress.
Click here to read the full guidance.