Resolution Plan (Living Will)

A Resolution Plan, commonly referred to as a Living Will, is a comprehensive strategy that large, systemically important financial institutions (SIFIs) are required to submit to regulators, detailing how the firm could be rapidly and orderly resolved in the event of material financial distress or failure without causing a significant disruption to the broader financial system or requiring a taxpayer-funded bailout. Mandated primarily by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, these plans ensure that a firm's failure can be managed by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve (Fed) under the Orderly Liquidation Authority (OLA) or through standard bankruptcy proceedings.