The Federal Reserve Bank of Richmond published an August Economic Brief titled “Living Wills for Systemically Important Financial Institutions: Some Expected Benefits and Challenges.” The brief considers challenges faced by regulators who must oversee the transition of systemically important financial institutions to resolvability, and some possible approaches to managing them.

Challenges include ascertaining short-term financing needs, organizational complexity of SIFIs and cross-border resolution hurdles. However, regulators may find that their authority under Dodd-Frank to impose changes in firm structures, together with market forces that may incentivize more streamlined organizational structures, may offer means to address some of these challenges.

The economic brief is available at: /media/richmondfedorg/publications/research/economic_brief/2015/pdf/eb_15-08.pdf