Federal regulators have identified weaknesses in the resolution plans, or living wills, of major U.S. banks, including Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase.

The primary issues involve the banks' ability to unwind their derivatives portfolios during times of distress, with deficiencies in trade-level characteristics and financial results compilation.

Citigroup was specifically noted for more severe deficiencies, particularly in stress scenarios and data reliability.

The FDIC and Federal Reserve differed in their assessment of Citigroup's weaknesses, with the FDIC viewing them as more serious.

Banks have until July 1, 2025, to address the identified shortcomings and submit updated plans.

Other major banks such as Bank of New York Mellon, Morgan Stanley, State Street, and Wells Fargo did not face any issues with their resolution plans.

Resolution plans were mandated following the 2008 financial crisis to ensure a swift and orderly resolution in case of financial distress or failure.