Federal regulators, including the FDIC and Federal Reserve, have identified significant deficiencies in the crisis management strategies, or "living wills," of Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase.
These deficiencies raise concerns about the banks' ability to navigate financial turmoil without taxpayer bailouts, as required by Dodd-Frank reforms since the 2008 crisis.
Citigroup's plan, in particular, was criticised for lacking credibility and failing to ensure an orderly resolution under US bankruptcy laws.
The banks have committed to accelerating improvements in data quality and regulatory processes to comply with federal requirements.
Moving forward, these institutions must revise their plans by 2025, emphasising robust contingency measures and obtaining necessary international approvals to bolster financial stability.