On April 18, the FDIC announced it has revised its approach to resolution planning for insured depository institutions (IDIs) to focus on operational details crucial for short-term operations and quick resolutions — such as selling a bank in a weekend or operating it temporarily while finding a buyer. As previously covered by InfoBytes, the FDIC proposed and later finalized the IDI Resolution Planning Rule, which strengthens requirements for large bank holding companies’ resolution plans, or “living wills” that set forth strategies for quick resolutions under bankruptcy in the event of financial distress or failure (for banks not deemed as a global and systemically important bank). For the next submission cycle, IDIs will be exempt from including certain elements in their plans, like using a bridge bank strategy or a hypothetical failure scenario. Acting Chairman Travis Hill noted that this shift was prompted by recent bank failures which highlighted the high costs and harms of bridge bank solutions. The FDIC also released updated FAQs to explain these exemptions and clarify expectations, with plans to review other rule provisions and potentially issue more FAQs in the future.