Living Wills

On June 19, 2012, the Financial Stability Board (“FSB”) issued a progress report to the G20 Leaders on the steps FSB member nations have taken to implement financial reforms designed to improve the stability of the global financial system.  The FSB reviewed, among other things, its members’ Basel implementation, adoption of resolution-planning regimes, oversight of the so-called “shadow banking system,” reform of the OTC derivatives market, and the effectiveness of the FSB itself.  The FSB concluded that its member nations have made significant progress in implementing globally agreed financial reforms, but large strides are still necessary—particularly regarding recovery and resolution planning—to protect the global economy against future financial crises.

What is the FSB?

The FSB is an [click to continue…]

On June 25, 2012, Heath Tarbert, partner and head of Weil’s Financial Regulatory Reform Working Group, and Sylvia Mayer, a partner in the Business Finance & Restructuring practice in Weil’s Houston office, were each quoted in the current issue of American Banker regarding the July 1 first round deadline for certain financial institutions to submit so-called “living wills” to resolve their affairs if the institution faced material distress or failure.  Tarbert was quoted as saying: “In many ways, this first round is probably a little bit less about potential resolution than it is about how these organizations are structured . . . [t]he goal over time will be to have the various scenarios built into the overall plan.”  Mayer added that “As no one has ever done this before, this first round of filing will effectively set the floor for this process . . . [t]he regulators have said informally that with this first round, nobody is going to fail. But after these first submissions, regulators are going to have expectations.”  The article, entitled “Banks’ Living Wills Face First Critical Test,” was written by Joe Adler and appears in the June 25th, 2012 issue of American Banker. [click to continue…]

Weil’s Marcia L. Goldstein, Heath P. Tarbert, and Kathlene M. Burke authored a column for The New York Law Journal discussing the recently finalized implementing rule in connection with resolution plans, or “living wills,” concluding that the regulations still leave a substantial degree of uncertainty as to what exactly it will take to ensure a plan is “credible.”

Access Full-Text Article from The New York Law Journal (may require subscription)

As noted today in Weil’s Bankruptcy Blog, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation published notice yesterday in the Federal Register that they are adopting the final rule to implement the Dodd-Frank Act’s requirement concerning resolution plans, which are commonly referred to as “living wills”.

New ‘Living Will’ Requirements for Banks and Resolution Powers for Regulators

Institute of International Bankers

November 30, 2011, Harold Proshansky Auditorium, CUNY Graduate Center, New York, NY | Register Now

Weil’s Derrick Cephas will appear at the IIB conference Implementation of the Dodd-Frank Act – Key Issues for International Banks. Mr. Cephas’ panel is titled “New ‘Living Will’ Requirements for Banks and Resolution Powers for Regulators” and will commence at 1:45 p.m.