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Federal Reserve Board invites public comment on an advance notice of proposed rulemaking to enhance regulators’ ability to resolve large…

October 14, 2022

Federal Reserve Board invites public comment on an advance notice of proposed rulemaking to enhance regulators’ ability to resolve large banks in an orderly way should they fail

For release at 12:00 p.m. EDT

    The Federal Reserve Board on Friday invited public comment on an advance notice of proposed rulemaking to enhance regulators’ ability to resolve large banks in an orderly way should they fail.

    Recent merger activity and organic growth have increased the size of large banking organizations. If they were to fail, their large size could complicate efforts by regulators to resolve the firms without disruption to customers and counterparties.

    As a result, the advance notice of proposed rulemaking asks for comment on several potential new requirements and resources that could be used for an orderly resolution of these large banking organizations, including a long-term debt requirement.

    “As the banking system changes, policymakers must continuously evaluate whether resolution-related standards and prudential standards for large banks keep pace,” Vice Chair for Supervision Michael S. Barr said. “That is why we welcome comment on an advance notice of proposed

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