Latin American Banks and Living Wills A Conference Call Briefing

Arnold & Porter LLP attorneys hosted a Conference Call Briefing to discuss important requirements relevant to non-US banks under the Dodd-Frank Act.

Under Dodd-Frank, a non-US bank with (1) US$50 billion or more in global assets and (2) a branch, agency or banking subsidiary in the United States is required to submit a resolution plan, often called a "living will," to US federal banking regulators. These banks face a deadline of April 1st to file an application with the Federal Reserve and the FDIC requesting approval to use a simplified "tailored" resolution plan. Without that approval, the non-US bank would need to file the full plan even if it otherwise would be eligible for the tailored plan.

Resolution plans of non-US banks with less than US$100 billion in US non-bank assets are due by year-end 2013, but a notice must be filed by April 1, 2013, if the institution wishes to file a simplified resolution plan. Resolution plans of foreign banks with between US$100 billion and US$250 billion in US non-bank assets must be submitted by July 2013, while non-US banks with US$250 billion or more in US non-bank assets were required to submit resolution plans in 2012.

The call reviewed which banks are subject to these requirements and eligible to apply to use a "tailored" plan, the implications of committing to a "tailored" resolution plan, and a proposed timetable to ensure that the bank is able to satisfy these requirements.