Title:

Living Wills for Systemically Important Financial Institutions : Some Expected Benefits and Challenges, No. 15-08

PREVIOUS | NEXT

Living Wills for Systemically Important Financial Institutions : Some Expected Benefits and Challenges, No. 15-08

DATE: August 2015

PART OF: AUTHORS: CONTRIBUTING AUTHOR:

ABSTRACT: The Dodd-Frank Act requires systemically important financial institutions to create resolution plans, or "living wills", that bankruptcy courts can follow if these institutions fall into severe financial distress. The plans must set out a path for resolution without public bailouts and with minimal disruption to the financial system. While living wills can, in this way, help to curb the "too big to fail" problem, regulators face a number of challenges in achieving this goal. The authority granted to regulators by the Act, including the power to make systemically important institutions change their structures, offers promising means of addressing these challenges.

Download (pdf) View Full Text

Share this page:


Diversity is critical to the Federal Reserve, and we are firmly committed to fostering a diverse and inclusive culture throughout the Federal Reserve System. Collections within FRASER contain historical language, content, and descriptions that reflect the time period within which they were created and the views of their creators. Certain collections contain objectionable content—for example, discriminatory or biased language used to refer to racial, ethnic, and cultural groups. These viewpoints and attitudes are inconsistent with our values, but the original descriptions are retained to ensure that they are not erased from the historical record.
Save & Share
less

Jarque, Arantxa , Price, David A. and Federal Reserve Bank of Richmond. "Living Wills for Systemically Important Financial Institutions : Some Expected Benefits and Challenges, No. 15-08," Economic Brief (August 2015). https://fraser.stlouisfed.org/title/6034/item/583939, accessed on May 27, 2022.

More Information
less

THEMES:

Metadata (XML)
Metadata (JSON)