Small business need-to-know and news-to-watch. The Dodd-Frank Act changes enacted to ensure previous gaps that led to crisis are plugged.
Excerpt: The most important new FDIC authorities under the Dodd-Frank Act are those that provide for enhanced resolution planning and, if needed, the orderly resolution of SIFIs. Prior to the recent crisis, the FDIC’s receivership authorities were limited to federally insured banks and thrift institutions. There was no authority to place the holding company or affiliates of an insured institution or any other non-bank financial company into an FDIC receivership to avoid systemic consequences. The lack of this authority severely constrained the ability of the government to resolve a SIFI and contributed to the excessive risk taking that led to the crisis.
Since passage of the Dodd-Frank Act, the FDIC has taken a number of steps to carry out its new systemic resolution responsibilities