WASHINGTON (Reuters) - Thirty-eight large financial companies will get an additional year to develop plans for how to unwind their business in an orderly way in the event of bankruptcy, U.S. banking regulators said on Tuesday.
The lenders will have until the end of next year to present their resolution plans, or "living wills," to regulators, according to the Federal Deposit Insurance Corporation and Federal Reserve. The previous deadline had been this December.
The Dodd-Frank financial reform law required financial companies with $50 billion or more in assets to file a living will, a plan intended to protect U.S. taxpayers from having to bail out failing banks. Other large financial institutions must also develop last-resort plans.
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Among the banks granted an extension this year were: Capital One Financial Corp <CITLP.PK>, PNC Financial Services Group Inc <PNC.N>, Regions Financial Corp <RF.N> and American Express Co <AXP.N>.
"Each plan must describe the company's strategy for rapid and orderly resolution ... in the event of material financial distress or failure of the company," the FDIC and Fed said in a statement.
(Reporting by Patrick Rucker; Editing by Will Dunham)