FDIC Finalizes Dodd-Frank Nonbank Liquidation Rule

Law360, New York (June 5, 2013, 5:04 PM EDT) -- The Federal Deposit Insurance Corp.’s board on Tuesday signed off on the final version of a rule defining which systemically important insurers and other nonbank financial companies the agency will be responsible for liquidating if they fail, as mandated under the Dodd-Frank Act.

The rule, approved at a meeting of the FDIC board but not yet officially issued, defines which companies are “predominantly engaged in activities that are financial in nature or incidental thereto” and whose failure would be systemically risky to U.S. financial stability, granting...
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