James Tanenbaum Anna Pinedo The global financial crisis has brought forth an array of proposals designed to prevent, or at least mitigate, the adverse consequences of future financial failures. One such proposal would require financial institutions to adopt plans that would function quite like an autopilot in the event of severe financial distress. Recovery and resolution plans, or living wills, would set forth the actions to be undertaken by a troubled or failed financial institution. The recovery component would outline actions necessary to preserve the institution as a going concern, while the resolution component would outline steps to be taken to minimise the systemic disruption associated with the institution's failure.
July 19 2010