FDIC Wind-Down Plan Won’t Be Pretty, But Just May Work

Law360, New York (May 10, 2012, 7:12 PM EDT) -- The Federal Deposit Insurance Corp.'s plan, detailed Thursday, to wind down failed major financial institutions would allow a company's subsidiaries to survive while the parent is put to rest — and that might be the only way to prevent a massive creditor run, attorneys say.

In a speech at a Chicago Federal Reserve Bank conference, FDIC Acting Chairman Martin Gruenberg laid out the agency's strategy for unwinding the largest financial institutions when they fail without relying on taxpayer support, a key plank of the 2010 Dodd-Frank...
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