Thomas Huertas spoke on the importance of working out whether the living wills proposals can work in practice. He explained why they are important and why a bank should be able to produce a recovery plan and keep it up to date. The plans make banks think about how they might raise more capital and liquidity, and how they could ensure any business units that a recovery plan would earmark for sale are readily saleable. Plans should also look at how quickly and efficiently a bank can run down books and whether, if necessary, the entire business could be sold to a third party. On the other hand, resolution plans are for the authorities to develop and implement, although banks need to be sure they can give the authorities, quickly, the information authorities need. He outlined the four resolution methods authorities can use – early equity injection; share transfer order; deposit transfer/bridge bank; and liquidation/deposit pay-off – and what factors might influence the best method in any specific case.