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PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
January 17, 2012
Media Contact:
Michele Heller
(202) 898-3679
mheller@fdic.gov

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-3-2012

FDIC Board Approves Final Rule Requiring Resolution Plans for Insured
Depository Institutions Over $50 Billion

FOR IMMEDIATE RELEASE

The FDIC today approved a final rule requiring an insured depository institution with $50
billion or more in total assets to submit to the FDIC periodic contingency plans for
resolution in the event of the institution's failure. These resolution plans will inform the
FDIC's ability, as receiver, to resolve the institution in a manner that ensures that
depositors receive access to their insured deposits within one business day of the
institution's failure (two business days if the failure occurs on a day other than a Friday),
maximizes the net-present-value return from the sale or disposition of its assets, and
minimizes the amount of any loss to be realized by the institution's creditors. The plans
will supplement the FDIC's own resolution planning work with information that would
help facilitate an orderly resolution in the event of failure.

The rule seeks to address a key lesson learned from the recent financial crisis, which is
that resolution plans for large and complex insured depository institutions are essential
for their orderly and least-costly resolution. The final rule is intended to address the
banking industry's continuing exposure to the risks of insolvency of large and complex
insured depository institutions -- an exposure that proper resolution planning can
mitigate.

The final rule enables the FDIC to perform its resolution functions most efficiently by
requiring the largest insured depository institutions to engage in extensive planning that
will, in cooperation with the FDIC, enhance the FDIC's ability to reduce losses to the
Deposit Insurance Fund and resolve the institutions in a manner that limits any
disruption from their insolvency.
Currently, 37 insured depository institutions are covered by the final rule. Those
institutions held approximately $4.14 trillion in insured deposits, or nearly 61 percent of
all insured deposits, as of Sept. 30, 2011.

The final rule, adopted by the Board under the Federal Deposit Insurance Act, is a
complement to separate joint rulemaking with the Federal Reserve that the FDIC Board
approved in September 2011 under Section 165(d) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act. The Section 165(d) rule requires certain
systemically important nonbank financial companies and bank holding companies to
prepare resolution plans – the so-called "living wills" – for such entities to be resolved in
an orderly manner under the Bankruptcy Code.

The final rule for insured depository institutions was preceded by an interim final rule
adopted in September 2011. The interim final rule became effective on Jan. 1, 2012,
and will remain in effect until it is superseded by this final rule effective April 1, 2012.
The final rule includes several modifications that were made in response to comments
received, including modifications to more closely align the final rule with the Section
165(d) rule.

Attachment:

Final Rule on Resolution Plans Required for Insured Depository Institutions with $50
Billion or More in Total Assets - PDF (PDF Help)