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Part II Bank Resolution, 8 Resolution of US Banks and Other Financial Institutions

Rodrigo Olivares-Caminal, Randall D. Guynn, Alan W. Kornberg, Sarah Paterson, Dalvinder Singh

From: Debt Restructuring (3rd Edition)

Rodrigo Olivares-Caminal, Alan Kornberg, Sarah Paterson, Dalvinder Singh, Eric McLaughlin

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 27 February 2024

Bank resolution and insolvency — Bank supervision — Investment business — Liquidity — Federal Deposit Insurance Corporation (FDIC)

Chapter 8 provides an overview of the resolution regimes under US law applicable to (i) banks; (ii) Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (government-sponsored enterprises or GSEs); and (iii) systemically important financial institutions. This chapter includes a detailed summary of the applicable resolution regimes, as well as a summary of the development of US resolution authority over time, from the establishment of the Federal Deposit Insurance Corporation (FDIC) in the early twentieth century to the creation in the early twenty-first century of a resolution statute for GSEs, to the post-financial crisis establishment of the orderly liquidation authority and resolution planning requirements in the Dodd-Frank Act. The chapter also provides overviews of the supervisory tools that banking regulators use to prevent the failure of banks, the single-point-of-entry recapitalization in resolution strategy that has been adopted by all the US global systemically important banking groups (G-SIBs), and international efforts to coordinate on cross-border resolutions.

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