Living Will Requirements Come into Focus

September 15, 2011
The Federal Deposit Insurance Corporation has adopted a final rule establishing requirements for “living wills” for the orderly resolution of large bank holding companies and systemically important nonbank financial companies. Though the final rule imposes significant obligations and burdens, it also responds to public comments calling for greater flexibility than the initial proposal. The FDIC also issued an interim final rule with “living will” requirements for large depository institutions. This update explains key provisions of the “living will” requirements and analyzes their effect on financial institutions.