WASHINGTON, May 22 - Two U.S. banking regulators have completed their review of resolution plans submitted by the country’s largest banks and major foreign banking organizations and did not identify any remaining deficiencies.
The Federal Reserve and the Federal Deposit Insurance Corporation reported that the so-called "living wills" filed by the eight largest U.S. banks and 56 foreign banking organizations met the agencies' standards in this review cycle. Regulators also announced that the specific shortcomings they had previously flagged in plans from Bank of America, Goldman Sachs, JPMorgan Chase and Citigroup have been addressed to the agencies' satisfaction.
Those four banks were singled out in 2024 after the agencies concluded their earlier filings did not adequately demonstrate how the firms could safely unwind derivatives portfolios in the event of bankruptcy. In the latest update, the Fed and FDIC indicated those gaps have been sufficiently remedied, and no additional failures were identified across the set of large domestic banks and the set of foreign banking organizations subject to review.
The regulatory findings encompass both U.S.-headquartered global banks and non-U.S. banks that operate in the United States and are required to submit resolution plans. By certifying the current submissions as free of identified deficiencies, the agencies signal that the stated mechanisms for a safe unwind in bankruptcy, including approaches for complex positions such as derivatives, satisfied the review criteria applied in this cycle.
The notice also included an unrelated investor-oriented segment discussing Citigroup's ticker symbol C. That segment described an AI-driven investment product called ProPicks AI, which evaluates Citigroup alongside many other companies using more than 100 financial metrics and highlighted past picks it noted as winners, including Super Micro Computer (+185%) and AppLovin (+157%). The segment offered readers an option to check whether Citigroup is included in any ProPicks AI strategies or to explore other opportunities.
The regulators' statement and the accompanying investor information were presented without identifying further corrective measures or additional unresolved items. Where earlier reviews had identified a narrow set of deficiencies related to derivatives unwind plans, the agencies now report those specific issues have been sufficiently addressed.
Context limitations: The agencies' announcement describes the outcome of the review and identifies that prior concerns were resolved, but it does not provide granular detail on the specific remedial steps the four banks took to remediate the earlier deficiencies.