Implementing Dodd–Frank Orderly resolution;.pdfVIP

Implementing Dodd–Frank: Orderly resolution Martin J. Gruenberg I would like to take the opportunity to discuss one of n Coordinate with regulators overseas regarding the those challenging issues—the orderly resolution of significant challenges associated with cross-border systemically important financial institutions (SIFIs). resolution. The Dodd–Frank Wall Street Reform and Consumer For the past year, this office has been developing its Protection Act provided important new authority to own resolution plans in order to be ready to resolve the Federal Deposit Insurance Corporation (FDIC) a failing systemic financial company. These internal to resolve SIFIs. Prior to the recent crisis, the FDIC’s FDIC resolution plans, developed pursuant to the receivership authority was limited to federally insured orderly liquidation authority provided under title II banks and thrift institutions. There was no authority to of Dodd–Frank, apply to a SIFI many of the same place the holding company or affiliates of an insured powers that the FDIC has long used to manage failed- institution or any other nonbank financial company into bank receiverships. This internal resolution planning an FDIC receivership to avoid systemic consequences. The lack of this authority severely constrained the abil- ity of the government to resolve a SIFI. This authority Martin J. Gruenberg is the acting chairman of the Federal has now been provided to the FDIC under the Dodd– Deposit Insurance Corporation (FDIC). The views expressed in this article are the author’ s and do not necessarily reflec