Title II of Dodd-Frank addresses the liquidation of large financial institutions. Title II provides that the FDIC may serve as receiver of nonviable financial institutions, whose failure pose a significant risk to the financial stability of the United State (a "covered financial company"). As the receiver of a covered financial company the FDIC is responsible for liquidating the covered financial company in accordance with the procedures outlined in Title II of Dodd-Frank.
On July 5, 2011, the FDIC issued a final rule (the "Final Rule") to implement certain provisions of its orderly liquidation authority under Title II of Dodd-Frank. The Final Rule established a comprehensive framework for the orderly liquidation of covered financial companies by the FDIC.
Regulatory Materials
- FDIC Final Rule: Certain Orderly Liquidation Authority Provisions under Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act - July 15, 2011
- FDIC Proposed Rule: Orderly Liquidation Authority - March 23, 2011
- Thomas M. Hoenig Speech: Financial Reform: Post Crisis? - February 23, 2011