OCC Allows Big Banks to Escape Recovery Planning Requirements

A federal regulator is rolling back decade-old guidance that called on the depository units of JPMorgan Chase & Co., Bank of America Corp., and other large national banks to develop plans to recover from severe financial stress.

Recovery plans, which were first required at banks with at least $50 billion in assets in 2016 before the threshold was adjusted, ended up not being useful when financial institutions faced potential failures, the Office of the Comptroller of the Currency said in a final rule announced Tuesday rescinding the guidance.

Regulators didn’t rely on recovery plans at Silicon Valley Bank, ...