FDIC Begins Floating Rules To Wind Down Failed Cos.

Law360, New York (October 13, 2010, 12:33 PM EDT) -- The Federal Deposit Insurance Corp. is moving to implement the new orderly liquidation authority for large financial companies established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, starting with a proposed rule that would require the company's creditors to shoulder substantial losses on their claims unless the FDIC says otherwise.

The FDIC Board of Directors voted Friday to release a proposed rule clarifying how it will treat certain creditor claims in resolution proceedings, as well as a request for comment on broader issues to...
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