REGULATION · US
US regulators approve living wills for large banks; OCC abstains amid discord
Federal Reserve and FDIC signed off on 'living wills' (bankruptcy resolution plans) for major banks, though OCC abstained, signaling ongoing disagreement on systemic risk modeling. Plans must address AI-driven operational concentration.
WHY IT MATTERS
Approved plans now must include AI/cloud vendor failure scenarios. Banks upgrading operational resilience frameworks to address single-vendor AI dependencies; expect tighter vendor SLAs and multi-source strategies.
Source: Reuters · 2026-05-22