WASHINGTON (12/11/13)--The Federal Deposit Insurance Corp. (FDIC) announced Tuesday that it is publishing its Single Point of Entry (SPOE) strategy for the resolution of Systemically Important Financial Institutions (SIFIs) in the Federal Register with request for comment.
Under the Dodd-Frank Act, the FDIC is charged with resolving a SIFI in a manner that holds accountable the owners and management responsible for the failure of the company while maintaining the stability of the U.S. financial system. The FDIC explain in it announcement that creditors and shareholders must bear the losses of the financial company in accordance with statutory priorities and without imposing a cost on U.S. taxpayers.
The agency's resolution strategy was developed after consultation with public and private sector stakeholders and Tuesday's action is intended to seek further public comment.
"The FDIC has provided greater detail on how it envisions the implementation of various aspects of this strategy including such key issues such as capital, liquidity, governance and restructuring. The FDIC looks forward to detailed public comment to further inform our resolution strategy planning," FDIC Chairman Martin Gruenberg said in a release.
The FDIC's Advisory Committee on Systemic Resolution is scheduled to meet today.
Also on Tuesday, the FDIC was scheduled to consider a joint rule, along with other agencies, that would implement the Dodd-Frank ban on banks' proprietary trading, known as the Volcker Rule.
Use the resource link to access more information on both rules.