Fed and FDIC issue template to guide smaller banks' living wills plans

|By:, SA News Editor

The template (see it here) is meant to guide banks with between $50B and $100B in nonbank assets - think U.S. Bancorp (USB), SunTrust (STI), and foreign banks with limited U.S. operations.

These smaller, less complex firms - not systemically important - can use the 27-page template to write resolution plans focusing on nonbank operations and their connection to banking operations. The form is expected to simplify a process that could be quite complicated and costly for the relatively-smallish lenders.

Among the larger banks (more than $100B in nonbank assets), 4 filed an initial version of their plans this summer. Eleven are approaching the October 1 deadline for a 2nd version.

Regional bank ETFs: IAT, KBE, KRE, RKH, QABA, KRU, KRS, KBWR.