Under the plan, large banks would have to hold additional capital if they purchase another bank's "loss-absorbing" debt that is used to contain fallout from a collapse. ... Read full article
Just as a recent law softened Dodd-Frank resolution plan requirements, the head of the Federal Deposit Insurance Corp. announced an effort to ease such rules for depository institutions. ... Read full article
As government officials reconsider how best to wind down large financial institutions, they should ensure the banking agencies have flexibility to act without disrupting markets. ... Read full article
A recent report from the agency settles a long-running debate about whether bankruptcy should replace Dodd-Frank’s “orderly liquidation authority.” The financial system needs both. ... Read full article
It’s unlikely a new chapter of the bankruptcy code for banks would be used in times of crisis or strengthen market discipline. ... Read full article
The Treasury Department struck a middle ground in recommendations for Dodd-Frank Act wind-down powers, resisting calls to repeal those powers but still addressing concerns that they are too generous to large firms. ... Read full article
The Trump administration on Wednesday refrained from proposing the elimination of authority to clean up failed financial behemoths, but the Treasury Department still wants substantial reforms to the resolution powers. ... Read full article
Treasury Secretary Steven Mnuchin said the Financial Stability Oversight Council will propose SIFI criteria before executing changes, and provided comments about the Volcker Rule, Orderly Liquidation Authority and housing finance. ... Read full article
The Federal Deposit Insurance Corp. has forged a pact with the European Union-based entity that handles failed-bank cleanups to share information and collaborate on planning for cross-border resolutions. ... Read full article
Andreas Dombret, head of regulation at Germany’s central bank, fears entering “the next stage of … an eternal cycle” of crises as countries begin dialing back regulations. ... Read full article
A recent failed-bank resolution in Europe may serve as a harbinger of how new authorities could cause problems in the U.S. and highlights the potential need for a modified bankruptcy process. ... Read full article
Some proponents of repealing crisis-era regulatory reforms argue that higher capital levels offer better protection. More capital is good, but it alone won’t solve every problem. ... Read full article
The Trump administration is prepping recommendations to address shortcomings in the capital markets in a report to be released next month, a top Treasury Department official said Monday. ... Read full article
Ahead of a vote on a bill that would eliminate orderly liquidation authority, supporters of those powers are proposing changes to make it more palatable to conservatives. ... Read full article
A top Trump administration official on Thursday vowed to roll back FDIC powers to seize and unwind a failing megabank. ... Read full article
President Trump’s budget would reduce funds to the CFPB and eliminate a fund designed to help regulators unwind a failing megabank. ... Read full article
The Congressional Budget Office said only community banks would choose to hold higher capital in return for fewer rules while lowering its estimate of cost savings of eliminating new FDIC resolution powers. ... Read full article
The Trump administration’s examination of Dodd-Frank Act powers to allow regulators to seize and unwind a failing megabank is drawing criticism from supervisors at home and abroad. ... Read full article
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. ... Read full article
