Agencies publish resolution plan feedback letters for certain domestic and foreign banking organizations

U.S. banking regulators found no shortcomings in the latest 'living wills' submitted by the nation's largest banks and dozens of foreign firms, clearing a key post-crisis review [1]. The Federal Deposit Insurance Corporation and the Federal Reserve Board published feedback letters for resolution plans submitted in July 2025 [1]. These plans, required of the eight largest domestic firms and 56 foreign banking organizations, must detail a strategy for orderly resolution during financial distress [1]. The agencies concluded the 2025 submissions contained no deficiencies [1]. The requirement for these plans stems from the 2008 financial crisis, which was exacerbated by deficiencies in regulation and the collapse of major institutions like Lehman Brothers [3]. In response, regulators globally implemented stricter oversight, including resolution planning to prevent chaotic failures and taxpayer-funded bailouts [3]. The U.S. framework specifically targets large, complex institutions considered systemically important [6]. The review also confirmed that four major domestic banks—Bank of America, Goldman Sachs, JPMorgan Chase, and Citigroup—had satisfactorily addressed derivatives-related weaknesses identified in their 2023 plans [1]. These firms are universal banks, participating in both commercial and investment banking activities [7]. Their global scale and complexity make their resolvability a persistent regulatory focus [6][7]. For foreign firms, the review ensures their U.S. operations can be resolved without destabilizing domestic markets. Many of these organizations, like British universal bank Barclays, operate in over 40 countries and are also subject to resolution oversight by their home authorities, such as the European Single Resolution Board [4][8]. The clean review indicates the current cohort of plans meets the agencies' standards, though the requirement for periodic submission and review remains a permanent fixture of post-crisis oversight [1][3].