FDIC & BANK OF ENGLAND CREATE RESOLUTION AUTHORITY FOR UNLIMITED CYPRUS-STYLE “BAIL-INS” FOR TBTF BANKS!

bank failure

The Federal Deposit Insurance Corporation (FDIC) and the Bank of England—together with the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, and the Financial Services Authority— have been working to develop resolution strategies for the failure of globally active, systemically important, financial institutions (SIFIs or G-SIFIs) with significant operations on both sides of the Atlantic.
The goal is to produce resolution strategies that could be implemented for the failure of one or more of the largest financial institutions with extensive activities in our respective jurisdictions. These resolution strategies should maintain systemically important operations and contain threats to financial stability. They should also assign losses to shareholders and unsecured creditors in the group, thereby avoiding the need for a bailout by taxpayers.
      
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One Response to FDIC & BANK OF ENGLAND CREATE RESOLUTION AUTHORITY FOR UNLIMITED CYPRUS-STYLE “BAIL-INS” FOR TBTF BANKS!

  1. Pingback: Signatories to the document which proposes that creditors of financial organizations, the depositors, carry responsibility to “bail in” bankrupt organizations. | Machholz's Blog

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