Regulators Find Weaknesses in Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America's Resolution Plans

Banking regulators found weaknesses in the 2023 resolution plans, or living wills, of Citigroup, JPMorgan Chase, Goldman Sachs, and Bank of America. The plans outlined how the banks would unwind themselves in a crisis or failure. Regulators faulted how the banks planned to unwind their massive derivatives portfolios, financial contracts tied to stocks, bonds, currencies, and interest rates. All four banks were said to have a "shortcoming" in their plans by the Federal Reserve and FDIC, while Citigroup alone received a more serious "deficiency" grade from the FDIC. The banks must address the issues identified in their next living will submissions due in 2025.