Agencies Finalize Resolution Plan Guidance for Certain Foreign Banks

On December 9, 2020, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation finalized resolution plan guidance for certain large foreign banking organizations (“FBOs”) with significant U.S. operations.

Under the revised scoping methodology of the Final Guidance, four FBOs are subject to the guidance,  which is one more than was subject to the guidance under the proposal.   The Final Guidance applies to three Specified FBOs’ targeted resolution plans that are due on December 17, 2021 and to the fourth FBO’s 2024 resolution plan.

This Alert Memorandum provides key takeaways from the Final Guidance, which was in many respects adopted as proposed but includes a number of revisions that provide tailored reductions in requirements in comparison to the Proposed Guidance.

In Appendix A, the memorandum compares the Final Guidance to the Proposed Guidance as well as to guidance provided to certain FBOs for their 2018 resolution plans.