What different types of companies will the FDIC now have the power to resolve?
The FDIC will now have the authority to resolve financial companies whose failure would pose a systemic risk to the financial stability of the United States. These companies include bank holding companies and nonbank financial companies such as securities brokers and dealers, and hedge funds. To resolve brokers and dealers, the FDIC would coordinate its efforts with the Securities Investor Protection Corporation (“SIPC”). Where insurance companies are concerned, the company would be resolved under state law, but the FDIC would step in to handle that resolution if the appropriate state authority did not take the necessary action. Is the FDIC prepared to handle its new responsibilities? • The FDIC is keenly aware that having a credible systemic resolution authority in place and being ready to act is critical to promoting financial stability and ending too big to fail. If another financial crisis occurs, we will be ready to put our systemic resolution authority to work as Congress intende
