The Federal Deposit Insurance Corp. is proposing that the top 40 U.S. banks — with assets totaling $8.3 trillion — submit “living wills” to show how they could be split off from parent companies and wound down. In parallel with Congressional reform efforts, the FDIC also is proposing that those selling securitiezed assets retain 5% of the risk on those assets. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, says the FDIC’s proposal preempt several sister regulatory agencies.
“If the FDIC was attempting to make the case for federal regulatory consolidation, its ill-timed proposals hit the mark.”
Contact Cornelius Hurley, 617-353-5427, firstname.lastname@example.org