12:34 PM EDT, 06/21/2024 (MT Newswires) -- The Federal Reserve and the Federal Deposit Insurance Corp. identified weaknesses in the resolution plans, also known as living wills, submitted by Bank of America ( BAC ) , Citigroup ( C ) , Goldman Sachs (GS) and JPMorgan Chase ( JPM ) , the agencies said Friday in a statement.

Living wills must describe a bank's strategy for orderly resolution in bankruptcy in the event of material financial distress or failure. The agencies determined that each weakness identified in the 2023 plans from Bank of America ( BAC ), Goldman and JPMorgan ( JPM ) is a "shortcoming," or weakness that raises questions about the feasibility of the plan.

The agencies identified a weakness in the plan submitted by Citigroup ( C ), but the FDIC determined that the weakness was a "deficiency," while the Fed considered it a shortcoming. A weakness identified as a deficiency could undermine the feasibility of the plan and is a more severe ruling than a shortcoming. When one agency finds a shortcoming and the other finds a deficiency, the plan is deemed to have a shortcoming, according to the statement.

In letters to the banks, the agencies described the specific weaknesses and informed them that the shortcomings are to be addressed in the next resolution plans due July 1, 2025.

JPMorgan ( JPM ) shares slipped 1.7% in recent Friday trading. Citigroup ( C ) dropped 1.5%, Goldman declined 1.1% and Bank of America ( BAC ) fell 0.9%,

Price: 39.57, Change: -0.42, Percent Change: -1.05