Agencies find Bank of America's 2025 resolution plan satisfactory
The Federal Reserve and Federal Deposit Insurance Corporation found Bank of America's 2025 resolution plan satisfactory. The Agencies did not identify any shortcomings or deficiencies in the submission.
Past shortcomings addressed
The Federal Reserve and Federal Deposit Insurance Corporation (Agencies) concluded that Bank of America's 2025 resolution plan satisfactorily addressed a shortcoming identified in the bank's 2023 submission regarding its derivatives portfolio.
The 2025 Plan, submitted by July 1, 2025, was reviewed under section 165(d) of the Dodd-Frank Act, which mandates large banking organizations to submit plans for rapid and orderly resolution in the event of material financial distress or failure.
An orderly resolution aims to mitigate the risk of serious adverse effects on U.S. financial stability.
The Agencies did not identify any new shortcomings or deficiencies in the 2025 Plan, encouraging continued enhancement of the assurance framework and contingency strategies for future submissions.
This positive assessment reflects the bank's efforts to improve its resolvability capabilities.
Enhancing critical capabilities
Bank of America demonstrated enhanced capabilities across several areas.
The bank improved its derivatives portfolio management, developing the ability to segment and unwind positions by counterparty.
A robust assurance framework was also established, enhancing governance and procedures for identifying and testing resolution capabilities.
Furthermore, contingency strategies were strengthened, allowing the bank to deploy options such as accelerating asset sales and accessing backup liquidity to address capital and liquidity shortfalls at material entities during resolution.
The 2025 Plan also updated information on necessary actions and legal matters in foreign jurisdictions.
The Agencies expect to conduct additional capabilities testing during the review of the bank's 2027 Plan.