FDIC resolution powers won't stop bail-outs, say academics

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New US bank resolution tools will not prevent government bail-outs of collapsing institutions, a panel of noted academics told US senators last week – despite claims from leading industry figures that US regulators have solved the too-big-to-fail problem.

Testifying before the Senate subcommittee on financial institutions and consumer protection on January 8, a panel of four academics delivered their unanimous verdict that the Orderly Liquidation Authority – the new receivership process created

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