Without powers granted by the Dodd-Frank Act to unwind failing financial firms, a central and known problem that contributed to our last financial crisis would become a core problem of our next one.
The top executives at Guaranty Bank said that, after years of struggles, the $1 billion-asset bank was a month or two away from raising the capital it needed to survive.
The full-scale attack on the “orderly liquidation authority,” the Dodd-Frank Act provision authorizing the government to manage wind-downs of failed companies, is unfortunate.
State regulators shuttered $4.7 billion-asset First NBC Bank of New Orleans in what is expected to be the costliest failure since the tail end of the financial crisis.
