Regulators Identify Weaknesses in Bankruptcy Plans of Major U.S. Banks

Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America must address deficiencies in their resolution strategies by 2025.

The Federal Reserve and FDIC found shortcomings in the 2023 resolution plans of four major banks.
Citigroup's plan was deemed especially problematic, with the FDIC labeling it a 'deficiency.'
The banks' difficulties primarily involve unwinding complex derivatives portfolios under stress scenarios.
Feedback letters have been issued, specifying required remedial actions for the next submission.
No weaknesses were identified in the plans from Bank of New York Mellon, Morgan Stanley, State Street, or Wells Fargo.