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Benzinga
  • 2 years ago
Banking regulators found weaknesses in the 2023 resolution plans, or living wills, of Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America. The plans outlined how the banks would unwind themselves in a crisis or failure. Regulators faulted how the banks planned to unwind their massive derivatives portfolios, financial contracts tied to stocks, bonds, currencies, and interest rates. All four banks were said to have a "shortcoming" in their plans by the Federal Reserve and FDIC, while Citigroup alone received a more serious "deficiency" grade from the FDIC. The banks must address the issues identified in their next living will submissions due in 2025.
Transcript
00:00It's Benzinga, and here's what's on the block.
00:03Banking regulators found weaknesses in the 2023 resolution plans or living wills of Citigroup,
00:08JPMorgan Chase, Goldman Sachs, and Bank of America.
00:12The plans were meant to outline how the banks would unwind themselves in a crisis or failure.
00:17Regulators faulted how the banks planned to unwind their massive derivatives portfolios,
00:22which are financial contracts tied to stocks, bonds, currencies, and interest rates.
00:27All four banks were said to have a shortcoming in their plans by both the Federal Reserve
00:31and FDIC, while Citigroup alone received a more serious deficiency grade from the FDIC.
00:38The banks will need to address the issues identified in their living will submissions
00:41due in 2025.
00:42For all things money, visit Benzinga.com.
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