2024 Supervisors Symposium

Developing RRP Framework

• Clear statutory/legal/regulatory framework for “who” does “what” to “who”, and “when” they do it. • FDIC and FHFA benefit from established special resolution authorities • FDIC and Fed can force banks to become makes resolvable under BK • OCC established recovery guidelines under statutory S&S (FDICIA) • What authorities do the States/CSBS have to compel NMC to make themselves resolvable under BK? • What authorities do the States/CSBS to resolve NMC in an orderly manner in event BK not feasible? • What authorities do the States/CSBS to require early remediation/receovery actions to reduce the probability of failure?

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Authorities Matter

• FDIC had no authorities whatsoever to get involved in bankruptcy processes before DFA. • Without special resolution authority over banks (since 1930s) and BHC (Title 2), FDIC would have no authority to conduct orderly resolutions. Just another insurer. • FHFA has similar powers over GSEs and FHLBs banks. • General safety and soundness/recovery planning authorities work….as long as some other authorities has resolution powers. • Understanding your authorities….and their limitations…is essential.

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