For release at 4:00 p.m. EST
The Federal Reserve Board and the Federal Deposit Insurance Corporation announced today the results of their joint review of the resolution plans for 71 domestic and foreign banking organizations. Resolution plans must describe a financial company’s strategy for rapid and orderly resolution in bankruptcy in the event of its material financial distress or failure.
The agencies identified two deficiencies in the 2021 plan submission of Credit Suisse AG, which pertain to resolution planning cash flow forecasting capabilities and governance for their U.S. operations. As detailed in a feedback letter, the agencies are requiring the firm to resubmit a revised resolution plan for its U.S. operations by May 31, 2023, that demonstrates the governance weaknesses have been addressed and in its next plan due by July 2024, that demonstrates the cash flow forecasting weaknesses have been remediated.
The agencies also identified a shortcoming in BNP Paribas’ 2021 plan submission. The shortcoming is related to the continuity in resolution of the bank’s securities repurchase agreement activity for their U.S. operations. A feedback letter to the firm describes the specific weaknesses resulting in the shortcoming and the actions required by the agencies.
The agencies did not identify shortcomings or deficiencies in the plans from the other banking organizations. However, as previously jointly announced in September , the agencies anticipate issuing guidance to help certain large banking organizations further develop their resolution plans.