Press Release

October 14, 2022 Federal Reserve Board invites public comment on an advance notice of proposed rulemaking to enhance regulators’ ability to resolve large banks in an orderly way should they fail For release at 12:00 p.m. EDT Share The Federal Reserve Board on Friday invited public comment on an advance notice of proposed rulemaking to enhance regulators' ability to resolve large banks in an orderly way should they fail. Recent merger activity and organic growth have increased the size of large banking organizations. If they were to fail, their large size could complicate efforts by regulators to resolve the firms without disruption to customers and counterparties. As a result, the advance notice of proposed rulemaking asks for comment on several potential new requirements and resources that could be used for an orderly resolution of these large banking organizations, including a long-term debt requirement. "As the banking system changes, policymakers must continuously evaluate whether resolution-related standards and prudential standards for large banks keep pace," Vice Chair for Supervision Michael S. Barr said. "That is why we welcome comment on an advance notice of proposed rulemaking on resolution-related standards, and are evaluating whether capital requirements for large banks, including global systemically important banks—as well as other elements of the prudential framework—should be updated." The advance notice of proposed rulemaking was jointly developed with the Federal Deposit Insurance Corporation (FDIC). Comments will be accepted for 60 days after publication in the Federal Register . Also on Friday, the Board announced its approval of the application by U.S. Bancorp, of Minneapolis, Minnesota, to acquire MUFG Union Bank, National Association, of San Francisco, California. In connection with the Board's approval, U.S. Bancorp has committed to provide the Board and the FDIC with an interim update to its resolution plan reflecting the combined organization, and implementation plans related to heightened prudential standards. For media inquiries, please email [email protected] or call 202-452-2955. Federal Register notice: Resolution-Related Resource Requirements for Large Banking Organizations Board memo (PDF) Order Approving the Acquisition of a Bank (PDF) Statement by Vice Chair Brainard Statement by Governor Bowman Statement by Governor Waller Related Content Board Votes

Federal Reserve (2022, October 13). Press Release. Press Releases, Federal Reserve. https://whenthefedspeaks.com/doc/press_release_20221014_federal_reserve_board_invites_public_comment_on

@misc{wtfs_press_release_20221014_federal_reserve_board_invites_public_comment_on,
  author = {Federal Reserve},
  title = {Press Release},
  year = {2022},
  month = {Oct},
  howpublished = {Press Releases, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/press_release_20221014_federal_reserve_board_invites_public_comment_on},
  note = {Retrieved via When the Fed Speaks corpus}
}