5 The proposed restrictions are a key step toward GSIB resolvability because the rapid unwinding of a GSIB’s qualified financial contracts could destabilize the financial system by causing asset fire sales and toppling other firms. Acting in conjunction with the FDIC, the Federal Reserve Board has also sought to increase GSIB resolvability through its review of the firms’ living wills.
Economic Perspectives A. Uneven Recession and Recovery In considering the economic perspectives, let me begin by touching on the characteristics of the recession caused by the pandemic and of the following recovery. Simply put, the most important feature of both the recession and the recovery is their unevenness.