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Financial Company Bankruptcies: Congress and Regulators Have Updated Resolution Planning Requirements

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Report Type Reports and Testimonies
Report Date July 21, 2020
Release Date July 21, 2020
Report No. GAO-20-608R
Summary:

The 2007-2009 financial crisis and the failures of large, complex financial institutions led some to question the adequacy of the Bankruptcy Code for reorganizing or liquidating these institutions. In response, the Dodd-Frank Act gave the Federal Deposit Insurance Corporation authority for a regulatory alternative to bankruptcy.

We looked at some proposed changes to the code, FDIC's authority to liquidate such companies, and actions FDIC and the Federal Reserve can take to plan resolutions of companies. Since 2015, Congress has not changed the bankruptcy code but regulators have updated resolution planning requirements.

FDIC

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