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Part II The US Resolution Regime, 7 Resolution of Non-Bank Financial Companies

From: Bank Resolution and Crisis Management: Law and Practice

Simon Gleeson, Randall Guynn

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 03 July 2022

Deposit insurance schemes — Equity — Claims

This chapter summarizes the key elements of the new orderly liquidation (resolution) authority in Title II of the Dodd‒Frank Act— enacted by the US Congress and signed by President Obama on 21 July 2010—and how it is expected to be used to implement an SPE strategy for resolving US G-SIBs. The chapter also discusses the main policy issues that were debated in the process of drafting Title II, and certain alternative proposals that are being considered based on the bankruptcy model. Title II is modelled on the US bank resolution statute and shares most of its features, including some of the super powers given to the FDIC, which acts as the resolving authority. This new resolution authority had come about from the debate over the treatment of systemically important non-bank financial companies following their insolvency.

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