Under the 2010 Dodd-Frank Act, the Federal Insurance Deposit Corp. can dismantle a firm if it can’t pass through bankruptcy without posing a significant threat to the financial system. Regulators are prepared to do so, Bloomberg explained.

A U.S. plan for seizing and liquidating a major bank would work if necessary, although it would be messy, according to Art Murton, a senior Federal Deposit Insurance Corp. official in charge of planning how to dismantle complex firms, and Bank of England Deputy Governor Paul Tucker. They spoke yesterday at an Institute of International Finance event in Washington.

“I think U.S. authorities could do it today — and I mean today,” said Tucker, who has worked with U.S. regulators on cross-border hurdles to taking down an international firm. “A global financial system will not survive if we don’t crack this problem.”

Most Popular Articles

FHA loan limits increasing for almost all of U.S. in 2020

Thanks to increases in home prices in 2019, the Federal Housing Administration loan limit will increase for nearly all of the country in 2020.

Dec 05, 2019 By

Latest Articles

HousingWire is growing. Come join us

2019 has been a year of tremendous audience and product growth for HousingWire and we couldn’t be prouder. But we’re not ready to rest on our laurels. Far from it. In fact, 2020 promises to be an even bigger year for HousingWire.

Dec 06, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please