Part II The US Resolution Regime, 6 Resolution of Insured Depository Institutions

Subject(s):

Deposit insurance schemes — Equity — Claims

This chapter covers the resolution of US insured depository institutions, which is governed primarily by sections 11 and 13 of the Federal Deposit Insurance Act. It discusses certain background issues, including the chartering authorities of the institutions that are subject to resolution authority, the deposit insurance requirement, the structure of the FDIC’s resolution unit, the administrative nature of the FDIC resolution process, and the relatively high level of legal uncertainty in this area of US law. This chapter then describes the supervisory and other tools designed to prevent troubled banks and thrifts from failing, and also discusses the resolution process, the recapitalization (bail-in) within resolution strategy, and the ancillary claims process for claims left behind in the receivership.