FDIC focuses on financial crisis's too-big-to-fail bank problem
By Brady Dennis
Later today, the Federal Deposit Insurance Corp. will hold the first in a series of roundtable discussions about the implementation of the far-reaching financial overhaul bill that President Obama signed into law last month.
The event will focus on a central element of the legislation: New powers that allow the government to seize and wind down large, troubled financial firms whose failure could damage the entire financial system. That so-called "resolution authority," which is aimed at ending the too-big-to-fail problem that exacerbated the recent financial crisis, will be overseen and implemented by the FDIC.
Already, the agency has approved the creation of a new Office of Complex Financial Institutions to help oversee bank holding companies with more than $100 billion in assets and non-bank firms deemed systemically important.
For Tuesday's roundtable, FDIC Chairman Sheila C. Bair has invited industry executives, academics, investors and fellow regulators to help outline a framework for the resolution process, the treatment of creditors in the event that the government seizes a large firm and the creation of "living wills" that firms must create to detail how they would be liquidated in the event of a crisis.
The event is scheduled from 1 to 5 p.m., and is invitation only. However, a live Web cast will be available at the agency's Web site, FDIC.gov, and an archived video will be available on the site for several days.
August 31, 2010; 11:28 AM ET
Categories: Federal Deposit Insurance Corp.
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