SIFMA Statement on FDIC and Fed Bank Resolution Plan Announcement

Release Date: April 13, 2016
Contact: Carol Danko, [email protected], 202-962-7390

SIFMA Statement on FDIC and Fed Bank Resolution Plan Announcement

Washington, D.C., April 13, 2016 – SIFMA today issued the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, on the FDIC and Federal Reserve’s announcement on the resolution plans for the largest financial institutions:

“Our financial market is vastly safer and sounder and more resilient than it was at the onset of the financial crisis. Central to this undertaking has been–and remains–balancing the efforts to reduce systemic risk while still ensuring well-functioning markets and the efficient allocation of capital in the U.S. and on a global scale for our retail, corporate and sovereign customers. ‎Our industry has fundamentally reshaped itself, making structural changes to corporate and technological practices, decreasing leverage substantially, and more than doubling capital levels and tripling liquidity to provide buffers against unexpected losses. Resiliency will increase even more as capital and liquidity requirements are fully implemented, and resolvability will be greatly enhanced by new TLAC requirements. Heightened prudential standards, including annual government run capital and liquidity stress tests and robust resolution and recovery planning exercises ensure firms will be able to function in times of severe economic and market conditions. Together these broad measures have served to eliminate ‘too big to fail’. “