FDIC Chairman Martin Gruenberg's Remarks to the Annual Washington Conference of the Institute of International Bankers

FDIC Chairman Martin J. Gruenberg gave a speech at the Institute of International Bankers' Annual Washington Conference reviewing U.S. and international regulatory efforts to develop a framework governing the orderly resolution of systemically important financial institutions ("SIFIs"), particularly those with extensive cross-border operations. In terms of progress in the U.S., Chairman Gruenberg stated that the FDIC and Federal Reserve are currently in the process of reviewing the first round of "living wills" submitted by large bank holding companies and foreign banking organizations pursuant toTitle I of the Dodd-Frank Act.

Chairman Gruenberg then discussed the FDIC's multilateral work with the Financial Stability Board of the G-20 Countries, as well as bilateral work with certain counterpart jurisdictions. He noted that, as part of this bilateral work, U.S. and U.K. regulators have discovered "a significant commonality" in their basic approach to a SIFI resolution. He summarized this approach as involving taking control of the failing institution at the parent company level, imposing losses on shareholders and creditors, replacing culpable management, and allowing solvent subsidiaries to remain open and operating to minimize disruption to the wider financial system.

Click here to view speech in full (links externally to FDIC website).See also: Governor Powell Speech at IIB Annual Conference on Too Big to Fail