US living wills: more changes possible for foreign banks

Author: Danielle Myles | Published: 20 Sep 2011

Last week’s long-awaited US living wills framework fell short of foreign banks’ principal demands, but their comments were "taken to heart" and some key requests have been accommodated, according to US attorneys.

The Federal Deposit Insurance Corporation (FDIC) adopted the rule on September 13, but it’s not complete until signed off by the Federal Reserve.

In the past the FDIC has proposed joint rules long before the other regulators, which have tweaked the FDIC proposal before becoming final, giving hope to foreign banks that the Federal Reserve may make further changes.
A Federal Reserve spokesperson told IFLR the bank regulator doesn’t yet have a timetable for looking at the FDIC rule.

The proposed living wills rule, issued in March, was strongly contested in the international banking community because its filing threshold of $50 billion in assets was based on global, not US operations.

Foreign banks asked for the requirement to...