The Federal Deposit Insurance Corp. board approved a proposed rule that would require about 40 U.S. financial institutions to submit annual contingent resolution plans — “funeral plans” — that would demonstrate how to wind down the company in the event of its failure.
FDIC board members voted unanimously to release the proposal for public comment during a meeting in Washington today. The proposed rule would apply to depository institutions with more than $10 billion in assets that are part of a bank holding company with assets of more than $100 billion.
Senators Mark Warner, a Virginia Democrat, and Bob Corker, a Tennessee Republican, have pushed for a similar proposal for all large financial institutions in the financial-overhaul bill now on the Senate floor.
Bloomberg