FDIC calls on bank subsidiaries to submit resolution plans


The Federal Deposit Insurance Corporation (FDIC) is seeking to ramp up its capability to intervene in resolving the status of failing financial institutions, by proposing new rules requiring subsidiary businesses to submit plans to the regulator on how they could separate from their parent company and be wound down in an orderly fashion in the event of bankruptcy.

In a notice of proposed rulemaking (NPR) released for public comment on May 12, the FDIC stated it would require certain identified

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