Complexity of Regulation
Chester S. Spatt: While our financial system is itself very complex, our financial regulators would benefit in many cases by designing simple and robust approaches…
Systemically Important Financial Institutions
Dodd-Frank Anniversary, Featured, Home, Volume 2
Dodd-Frank and the Future of Financial Regulation
Edward F. Greene: Dodd-Frank represents the most sweeping changes to the financial regulatory environment in the United States since the Great Depression. While its enactment was important, the Act is seriously flawed…
Featured
Identifying and Managing Systemic Risk: An Assessment of Our Progress
Steven L. Schwarcz: Although a chain of bank failures remains an important symbol of systemic risk, the ongoing trend towards disintermediation…
Featured, Home, Updates
One Way That Dodd-Frank’s Liquidation Authority Could Achieve Parity With The Bankruptcy Code
Harvey R. Miller and Maurice Horwitz
On October 19, 2010, the FDIC published a proposed rule governing the implementation of Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Title II of Dodd-Frank creates an orderly liquidation authority for the resolution of systemically important financial institutions. According to the FDIC’s Notice of Proposed Rulemaking Implementing Certain Orderly Liquidation Authority Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, “[t]he liquidation rules of Title II are designed to create parity in the treatment of creditors with the Bankruptcy Code and other normally applicable insolvency laws.”