The Federal Deposit Insurance Corp. released its strategy for dismantling big failing financial institutions even as board members said the plan continues to face major obstacles, Bloomberg News reported yesterday. The FDIC’s guidance, opened for a 60-day public comment period yesterday, illuminates a key power bestowed on the agency by the 2010 Dodd-Frank Act: the authority to seize and restructure a large, failing financial company. The FDIC will seize a U.S. firm at the parent-company level, impose losses on shareholders and give creditors equity in a new holding company, according to the strategy.
To read the FDIC's proposed strategy, please click here: http://www.fdic.gov/news/board/2013/2013-12-10_notice_dis-b_fr.pdf