Resolution Plan Federal Reserve System
federal reserve resolution planfed living willfinancial stabilitysystemic risk mitigationbanking crisis prevention
The Federal Reserve System mandates Resolution Plans, often referred to as "Living Wills," for large financial institutions. These comprehensive plans detail how a firm could be wound down in an orderly fashion in the event of severe financial distress or failure, aiming to prevent a broader systemic shock to the economy and maintain overall financial stability.