The FDIC and the SEC proposed a rule to govern the orderly liquidation of "covered brokers-dealers," or large broker-dealers that are subject to liquidation under the Dodd-Frank Act and not dissolution under the Securities Investor Protection Act.
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A Federal Reserve Board final rule that expands the number of financial institutions that fall under the "netting" provisions of the Federal Deposit Insurance Corporation Improvement Act of 1991 was published in the Federal Register.
The FDIC and the SEC proposed a rule to govern the orderly liquidation of "covered brokers-dealers," or large broker-dealers that are subject to liquidation under Title II of the Dodd-Frank Act and not dissolution under the Securities Investor Protection Act ("SIPA").
FDIC Chair Martin J. Gruenberg observed that the financial industry has rebounded from the 2008 crisis and is better prepared to react to economic challenges.
The FDIC adopted a final rule that restricts cancellation rights for qualified financial contracts when a counterparty enters into bankruptcy or resolution proceedings.