The Federal Reserve Board and the FDIC Implement Annual Resolution Plan Regulation

On Monday, October 17, 2011, the Federal Reserve Board (the "Board") announced that the Board and the Federal Deposit Insurance Corporation (the "FDIC") adopted a final rule implementing the resolution plan requirement of Section 165(d)(1) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Section 165(d)(1) requires each non-bank financial company designated by the Financial Stability Oversight Council ("FSOC") for enhanced supervision by the Board and each bank holding company with assets of $50 billion or more to report periodically to the Board, the FDIC, and the FSOC the company's plan for rapid and orderly resolution in the event of material financial distress or failure.

Under the final rule, companies will submit their initial resolution plans on a staggered basis.  The first group of companies, generally those with $250 billion or more in non-bank assets, must submit their initial plans on or before July 1, 2012; the second group, generally those with $100 billion or more, but less than $250 billion, in total non-bank assets, must submit their initial plans on or before July 1, 2013; and the remaining companies, generally those subject to the rule with less than $100 billion in total non-bank assets, must submit their initial plans on or before December 31, 2013.

Read the Board press release

© 2011 Perkins Coie