Creditors Face New FDIC Claims Resolution Rules

Law360, New York (January 19, 2011, 6:34 PM EST) -- The Federal Deposit Insurance Corp. has inched closer to implementing new orderly liquidation authority for large financial companies by approving a rule that will require creditors to shoulder substantial losses on their claims unless the FDIC says otherwise.

The FDIC's board of directors voted Tuesday to approve an interim final rule clarifying how the agency will treat certain creditor claims in resolution proceedings under Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which provides a mechanism for appointing the FDIC as receiver...
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