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35 » VISIT US ONLINE @ DSNEWS.COM ose five firms were provided with notices issued jointly by the Fed and FDIC detailing the deficiencies in their plans. e firms have until October 16 to remediate the deficiencies; otherwise, they will likely be subject to more stringent oversight and regulation. As for the three other systemically important firms that submitted living wills, the Fed and FDIC identified weaknesses in the plans of Goldman Sachs and Morgan Stanley but did not make any joint determinations about the plans and their deficiencies. e FDIC determined Goldman Sachs' plan was "not credible or would not facilitate an orderly resolution under the U.S. Bankruptcy Code, and identified deficiencies." e Fed made the same determination about Morgan Stanley's plan. Citigroup was the only firm out of the eight whose living will plan was not determined by either agency to be not credible. Neither agency found that Citigroup's plan would not facilitate an orderly resolution under the Bankruptcy Code. e agencies did, however, identify shortcomings in Citigroup's plan that the firm must address, according to the Fed. e deadline for the eight financial firms to make their next full living will plan submission is July 1, 2017. "Obviously we were disappointed with the conclusion reached by the joint agencies on our resolution plan," Lake said. "We have taken this planning process very seriously—and we believe we have made substantial progress. Having said that—the most important thing is that we work with our regulators to understand their feedback in more detail. And we are fully committed to meeting their expectations." According to a Bank of America spokesman, "As the regulators indicated today, we have made progress over the past several years by taking important steps to enhance our resolvability and facilitate an orderly resolution in bankruptcy, but we have more work to do. We will expeditiously address the shortcomings and deficiencies identified, and develop a credible plan that allows for an orderly resolution without taxpayer support. Today's announcement does not affect our ability to serve our customers and clients and return capital to our shareholders." A Wells Fargo spokesperson said of the results, "We were disappointed to learn that our 2015 resolution plan submission was determined to have deficiencies in certain areas. e Federal Reserve Board and the FDIC acknowledged the continued steps Wells Fargo has taken in enhancing its resolution plan, and we view the feedback as constructive and valuable to our resolution planning process. We understand the importance of these findings and we will address them as we update our plan by the October 1, 2016, deadline identified by the agencies. We remain dedicated to sound resolution planning and preparedness." e House Financial Services Committee took a step toward ending too big to fail by passing a bill to repeal Dodd-Frank's bailout fund for large, complex financial institutions. "When it comes to the resolution of these large, complex financial institutions, should we have bailouts or should we have bankruptcy?" Hensarling said. "I think most people, particularly on the Republican side of the aisle, believe there should be bankruptcy. No sweetheart deals, no more AIG deals where foreign creditors get 100 cents on the dollar; the bankruptcy process is far superior. ere is no one financial institution that should be deemed 'too big to fail' and others 'too small to matter.'" "We believe that it is in everyone's best interest to end the debate on too big to fail. . ." —JPMorgan Chase CFO Marianne Lake www.4prescient.net 888.653.8357 Identify Associations Retrieve Pertinent Documents Determine Account Statuses Order, Pay & Receive Online H O A A C C O U N T M A N A G E M E N T H O A A C C O U N T M A N A G E M E N T

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