The Federal Deposit Insurance Corporation and the Federal Reserve Board published on May 22 feedback letters for resolution plans submitted in July 2025 by several large banking organizations.
Resolution plans, also called living wills, are required from major banking organizations to outline how they would be resolved in an orderly way if they experience significant financial distress or failure. The agencies jointly reviewed the 2025 plan submissions from the eight largest and most complex domestic banking organizations as well as from 56 foreign banking organizations.
According to the agencies, no shortcomings or deficiencies were found in any of these resolution plan submissions. This outcome indicates that the institutions have met regulatory expectations regarding their strategies for potential resolution scenarios.
Additionally, the agencies reported that each derivatives-related weakness previously identified in the 2023 plans of Bank of America, Goldman Sachs, JPMorgan Chase, and Citigroup has now been satisfactorily addressed. This suggests improvements have been made by these firms to resolve issues flagged in earlier reviews.
Resolution planning is a key component of oversight intended to ensure stability within the financial system should a large institution encounter severe difficulties. The process aims to minimize disruption to markets and protect taxpayers from losses associated with bank failures.
