Plan Resolution For Free

Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires that bank holding companies with total consolidated assets of $50 billion or more and nonbank financial companies designated by the Financial Stability Oversight Council (FSOC) for supervision by the Federal Reserve periodically

Resolution plans describe the company's strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure.

The term refers to planning by a financial institution and the authorities for the eventuality the firm suffers life-threatening losses. The standards state each firm should maintain a recovery plan that spells out what the management could do to keep the firm solvent.

While the objective of the recovery plan is to restore the business and financial viability of the institution that is a going concern, the resolution plan aims to ensure that resolution objectives2 are met.

A resolution plan is a comprehensive document, which details the characteristics of a bank and describes the preferred resolution strategy for that bank, including which resolution tools to apply.

A bank's living will is similar to a prepackaged bankruptcy plan.The living will details a contingency plan for how the bank will sell off assets or be liquidated in a manner that does not generate chaotic aftershocks elsewhere in the financial system.

A resolution plan is a comprehensive document, which details the characteristics of a bank and describes the preferred resolution strategy for that bank, including which resolution tools to apply. It concludes with a resolvability assessment of the bank.