The Insolvency Of Important Financial Institutions
August 24, 2009, 12:36 PM EDT
Law360, New York (August 24, 2009, 12:36 PM EDT) -- The Obama administration's proposed Resolution Authority for Large, Interconnected Financial Companies Act of 2009 is intended to provide more explicit and organized federal authority for intervention in certain financial emergencies, in particular those for which the government felt it had inadequate tools available during the early stages of the present financial crisis.
Roughly speaking, the proposed new tools would permit the government to:
- Intervene prior to an institution's insolvency;
- Provide many different types of financial support, including guarantees;