Lawmakers Revise Creditor Haircut For Failing Banks

Law360, New York (December 9, 2009, 3:03 PM EST) -- Reps. Brad Miller, D-N.C., and Dennis Moore, D-Kan., plan to offer an amendment to financial regulatory reform legislation that would reduce the amount by which the Federal Deposit Insurance Corp. can limit the claims of secured creditors of failed banks.

The proposal revises language in the omnibus Wall Street Reform and Consumer Protection Act of 2009, H.R. 4173, to allow the FDIC to impose only a 10 percent haircut on secured creditor claims against failing financial firms placed into FDIC receivership that wind up depleting receivership...
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