Geithner Wants Wind-Down Authority Over Nonbanks

Law360, New York (March 24, 2009, 12:00 AM EDT) -- Citing the systemic risk posed by the potentially chaotic collapse of American International Group Inc. prior to the government's bailout, Treasury Secretary Timothy F. Geithner on Tuesday asked Congress to pass legislation that would provide the government the authority to take over nonbank financial institutions in distress.

Such expanded powers would be modeled on the Federal Deposit Insurance Corp.'s powers to take over a failed bank and would require the Treasury secretary to get the approval of the appropriate federal regulatory agency as well as the...
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