FDIC announces strategy to resolve too-big-to-fail
When a large bank fails the FDIC will act as both resolution authority and as the deposit insurer, explained Martin Gruenberg, acting FDIC chairman, at the Federal Reserve Bank of Chicago’s Bank Structure Conference. Gruenberg explained that the corporate structures of large banks usually include several subsidiary companies. Often these companies do not have clear distinguishing lines and the entities frequently share intra-company risk. For this reason, under the resolution strategy the parent company will be seized, the subsidiaries will continue to operate . . .
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