By Adriano Marchese

Shares of four major U.S. banks were lower Friday afternoon after a federal regulator found weaknesses in their resolution plans.

Shares of Citigroup traded as low as $59.34, and recently traded 1.1% lower at $59.97. Bank of America shares fell to a low of $39.41 and recently traded 0.9% down at $39.96. Goldman Sachs shares were down 1.1% to $453.06, coming up from a low of $451.43 earlier, while JPMorgan Chase was down 1.3% to $196.14, coming back from a low of $194.22.

The Federal Reserve and the Federal Deposit Insurance Corp. said wind-down plans from JPMorgan Chase, Bank of America, Goldman Sachs and Citigroup all had weaknesses which raised questions about their feasibility.

The plans, known as living wills, are detailed plans of how they would wind down operations and repay creditors if they went bust.

Since the 2008 financial crisis, the eight largest banks in the country have been required to submit plans to regulators that would cover such a scenario.

The banks have one year to address the weaknesses when they submit their next living wills in 2025.

Regulators can issue penalties over living will deficiencies, such as forcing the banks to hold more capital or limiting their ability to grow assets.

Write to Adriano Marchese at

(END) Dow Jones Newswires

06-21-24 1353ET