Often the complexity is motivated by tax or regulatory factors, rather than a clear business purpose. Given the way these firms are structured and their linkages to key systems and other institutions, resolution of such an organization will carry significant risk of spillovers to other key markets, payments systems, or systemically important institutions.
The Cross-Border Bank Resolution Group consequently recommended developing initiatives that would result in simpler, less interconnected organizational structures. Living wills This point leads us to one much-discussed idea, that of firm-specific resolution plans – sometimes referred to more colorfully, though not wholly accurately, as living wills.