Agencies extend resolution plan submission deadline for some large financial institutions

The Federal Reserve Board and the Federal Deposit Insurance Corporation announced Wednesday that they are extending the resolution plan submission deadline for certain large financial institutions. These companies will have to submit their resolution plans by March 31, 2025, instead of July 1, 2024.

By law, certain large financial institutions must periodically submit resolution plans to the agencies. These resolution plans, also known as "living wills," should outline a company's strategy for an orderly resolution in the event of significant financial difficulties or bankruptcy of the company.

In August of last year, the agencies invited the public to comment on proposed guidance on how the resolution plans of certain large financial institutions could address key resolution challenges. The agencies indicated that they were considering granting an extension of the next resolution plan submission date to provide reasonable time for the proposed guidance, once finalized, to be reflected in the plan submissions. The public comment period closed on November 30, 2023, and agencies continue to develop final guidance.