Part II The US Resolution Regime, 8 Resolution Planning

Abstract

This chapter describes the resolution planning process in the United States for liquidating, reorganizing, or otherwise resolving systemically important financial institutions that have reached the point of non-viability. Resolution is the last stage along the full continuum of contingency planning from risk management, to early remediation, to recovery planning, to resolution planning, that is sometimes referred to as a ‘living will’. Activating a resolution plan would be a last resort, when various ex ante solutions designed to reduce the likelihood of failure have been unsuccessful. Preparing and regularly updating a resolution plan is required under Title I, section 165(d) of the Dodd‒Frank Act, which applies to all bank holding companies (BHCs) and foreign banking organizations with assets of $50 billion or more, as well as any non-bank financial institution that has been designated as systemically important.