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Implementing Dodd–Frank: orderly resolution


  • Martin J. Gruenberg


I would like to take the opportunity to discuss one of those challenging issues—the orderly resolution of systemically important financial institutions (SIFIs). The Dodd–Frank Wall Street Reform and Consumer Protection Act provided important new authority to the Federal Deposit Insurance Corporation (FDIC) to resolve SIFIs. Prior to the recent crisis, the FDIC’s receivership authority was limited to federally insured banks and thrift institutions. There was no authority to place the holding company or affiliates of an insured institution or any other nonbank financial company into an FDIC receivership to avoid systemic consequences. The lack of this authority severely constrained the ability of the government to resolve a SIFI. This authority has now been provided to the FDIC under the Dodd–Frank Act.

Suggested Citation

  • Martin J. Gruenberg, 2012. "Implementing Dodd–Frank: orderly resolution," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 98-102.
  • Handle: RePEc:fip:fedhep:y:2012:i:qiii:p:98-102:n:v.36no.3

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    References listed on IDEAS

    1. Ian Vá¡squez, 2002. "A Retrospective on the Mexican Bailout," Cato Journal, Cato Journal, Cato Institute, vol. 21(3), Winter.
    2. repec:cto:journl:v:21:y:2002:i:3:p:369-393 is not listed on IDEAS
    3. Nadezhda Malysheva & John R. Walter, 2010. "How large has the federal financial safety net become?," Working Paper 10-03, Federal Reserve Bank of Richmond.
    4. Viral V. Acharya & Matthew Richardson & Stijn Van Nieuwerburgh & Lawrence J. White, 2011. "Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance," Economics Books, Princeton University Press, edition 1, number 9400.
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