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

NAR bans “pocket listings”

The National Association of Realtors board of directors voted 729-70 on Monday to ban the controversial practice of “pocket listings.”

Nov 12, 2019 By

Latest Articles

FHA capital level is the highest since 2007

The Federal Housing Administration’s flagship Mutual Mortgage Insurance Fund is in the best condition since before the financial crisis, with capital levels at the highest level since 2007.

Nov 14, 2019 By