Orderly Liquidation Authority

SIFMA provides comments to the Federal Deposit Insurance Corporation (FDIC) on a FDIC Notice of Proposed Rulemaking (NPR) that would implement certain orderly liquidation authority provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) (FR Docket No. 2010-26049).  In a previous letter to the FDIC on November 18, 2010, SIFMA shared its belief that the new orderly liquidation authority in Title II of the Dodd-Frank Act is one of the most important new tools in the U.S. regulatory toolbox.

SIFMA’s letter of January 18, provides answers to specific questions posed in the NPR subject to a 90-day comment period.  The NPR questions address several areas relating to the orderly liquidation authority, including: 1) resolution of a systemically important financial institution; and 2) coordination with other domestic and foreign authorities. In addition, SIFMA offered its observations and recommendations about the proposal.