The creation and supervisory review of these plans would require firms and their regulators to confront the difficulties posed by complex legal structures well in advance of the firm’s financial distress, and in some cases could lead firms to simplify their internal structures.
There are three pressing issues on the reform agenda: The first problemconcerns systemically important financial institutions, SiFis for short. To realign risks and return, the reform agenda is putting much effort in resolving the “too-big-tofail” problem. Capital surcharges for SIFIs will be applied to help achieve this goal.