F.D.I.C. Approves ‘Too Big to Fail’ Plan
A top banking regulator approved a plan to seize and unwind big banks — a proposal that will help address those “too big to fail” firms whose collapse could imperil the financial system.
The board of Federal Deposit Insurance Corporation voted unanimously on Tuesday to approve a set of proposed rules intended to create an orderly process to unwind large financial institutions. The rules outline how creditors can file a claim and how those claims will be addressed, hopefully bringing some clarity to a previously murky situation.
The vote moves the proposal into a 60-day public comment period, after which the agency will have to settle on final rules. The rule would apply to big banks, financial firms and large nonfinancial companies that pose a systemic risk to the broader economy.
You can check out the rest of this report from the NY Times here…
From the FDIC
FDIC Board Approves Proposed Rule to Set Claims Process Under the Dodd-Frank Act’s Orderly Liquidation Authority Provisions
FOR IMMEDIATE RELEASE
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a Notice of Proposed Rulemaking (NPR) to further clarify application of the orderly liquidation authority contained in Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act, “Orderly Liquidation Authority” (OLA). The NPR builds on the interim rule approved by the FDIC on January 18, 2011, which clarified certain discrete issues under the OLA. The NPR approved today establishes a comprehensive framework for the priority payment of creditors and for the procedures for filing a claim with the receiver and, if dissatisfied, pursuing the claim in court. The NPR also clarifies additional issues important to the implementation of the OLA, including how compensation will be recouped from senior executives and directors who are substantially responsible for the failure of the firm. The NPR, along with the interim final rule, is intended to provide clarity and certainty about how key components of OLA will be implemented and to ensure that the liquidation process under Title II reflects the Dodd-Frank Act’s mandate of transparency in the liquidation of covered financial companies.
“Today’s action is another significant step toward leveling the competitive playing field and enforcing market discipline on all financial institutions, no matter their size. Under Dodd-Frank, the shareholders and creditors will bear the cost of any failure, not taxpayers,” said FDIC Chairman Sheila C. Bair. “This NPR provides clarity to the process by letting creditors know clearly how they can file a claim and how they will be paid for their claims. This is an important step in providing certainty for the market in this new process.”
In addition to the priority of claims and the procedures for filing and pursuing claims, the NPR defines the ability of the receiver to recoup compensation from persons who are substantially responsible for the financial condition of the company under Section 210(s) of the Dodd-Frank Act. Before seeking to recoup compensation, the receiver will consider whether the senior executive performed his or her responsibilities with the requisite degree of skill and care, and whether the individual caused a loss that materially contributed to the failure of the financial company. However, for the most senior executives, including those performing the duties of CEO, COO, CFO, as well as the Chairman of the Board, there will be a presumption that they are substantially responsible and thus subject to recoupment of up to two years of compensation. An exception is created for executives recently hired by the financial company specifically for improving its condition.
The NPR also ensures that the preferential and fraudulent transfer provisions of the Dodd-Frank Act are implemented consistently with the corresponding provisions of the Bankruptcy Code. The proposed rule conforms to the interpretation provided by the FDIC General Counsel in December 2010.
Finally, the NPR clarifies the meaning of “financial company” under OLA. Under the proposal, a financial company will be defined as “predominantly engaged” in financial activities if their organization derived at least 85 percent of its total consolidated revenue from financial activities over the two most recent fiscal years. This rule will enhance certainty about which financial companies could be subject to resolution under OLA.
The proposed rule will be out for comment 60 days after publication in the Federal Register.
ADDRESSES: You may submit comments by any of the following methods:
- Agency Web Site: http://www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the Agency Web Site.
- E-mail: Comments@FDIC.gov. Include “Priorities and Claims” in the subject line of the message.
- Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, Federal Deposit Insurance Corporation, 550 17th Street, NW, Washington, D.C. 20429.
- Hand Delivery/Courier: Guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7 a.m. and 5 p.m. (EDT).
- Federal eRulemaking Portal: http://www.regulations.gov/. Follow the instructions for submitting comments.
- Public Inspection: All comments received will be posted without change to http://www.fdic.gov/regulations/laws/federal including any personal information provided. Paper copies of public comments may be ordered from the Public Information Center by telephone at (877) 275-3342 or (703) 562-2200.
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4closureFraud.org
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Proposed Rule On Priority Claims Under The Orderly Liquidation Authority of Dodd-Frank Act
Ok, what else can I do to let my 2 cents be known? I’ve already e-mailed FDIC. You know I love the Action Alerts on this site and I think they REALLY DO accomplish something. If it weren’t for the Action Alert on the HR 3808 and all of us saying “NO WAY”, that disgusting bill might have been passed! I’m still thinking they are going to try and pull a fast one on a MERS pardon over Easter break. I just have a feeling…
If any one has any doubts about the NEW WORLD ORDER and they still think it is just a conspiracy theory, they need to take a look at what the NEW WORLD ORDER/U.N. has devised. It is a WORLD CONSTITUTION devised by the WORLD CONSTITUTION AND PARLIAMENT. Spread the word and send this link to everyone you know. They want to destroy our Constitution and Bill of Rights and replace it with this satanic shit hidden under the guise of World peace and mother earth. LIARS!!!! The people in the Countries of Europe all gave up their sovereignty and their Constitutions when they entered the EU. Do you know what the new name of the NYSE is? It is now called the NYSE/EURONEXT. These dirty bastards. They are trying to SNEAK and STEAL OUR NATIONAL SOVEREIGNTY, OUR U.S. CONSTITUTION and OUR BILL OF RIGHTS, ALL OF OUR AMERICAN FREEDOMS. Call your CONgressman, Senators, Governors and the White House, tell them we want no part of the NEW WORLD ORDER/U.N. and we want OUT OF THE U.N. We will never give up our rights and we will always remain a SOVEREIGN NATION, ONE NATION, UNDER GOD, WITH LIBERY AND JUSTICE FOR ALL. GOD BLESS AMERICA!!! We cannot let them sneak in the NEW WORLD ORDER, we will then be living under communist facsist dictatorship rule. Here is the link: http://oneworld.wikia.com/wiki/Constitution_for_World_Federation
Tell the FDIC that the American people want the FOREIGN MULTINATIONAL BANSTERS to be sent packing. Including the evil lurking behind the Fed, Wall Street and all of the FOREIGN MULTINATIONAL CORPORATIONS who want to kill free market capitalism and turn it into facsist CRONY CAPITALISM. They are all frauds and have infiltrated our entire system because of treasonists with in our own Governmental and Judicial structures. We do not obey or have no allegiance to the vatican assassins. We The People DEMAND OUR NATIONAL SOVEREIGNTY FROM THE UNITED NATIONS/NEW WORLD ORDER. GOD BLESS AMERICA.
I am a firm believer that a majority of the citizens in America…DO NOT believe anything said by anyone involved with the financial industry…including the government. Anything said…reverse it, and that will tell what is planned…nothing has come of any good to the citizens. Why must we now even believe any thing…they all have lied so long they all believe their own lies…they have forgotten what the truth is. And YES, all have proven to America that CRIME DOES PAY and pays very well…Anyone who disagrees with me can step up to the plate and express their opinion.
America does not need any more investigations or anymore ‘ ideas ‘ from anyone…the crimes reek throughout the financial industry and completely ignored by the government we once trusted…that tells America, they too, our government, backs up the crimes that has taken America to ruins…all in the name of greed and control.
Now it our turn to ‘ turn the tide’ around…the only way to get America back is by force. Sad, but true. We have given enough time for arrests and indictments, and with nothing being done to those who rode the golden ride to riches…only say’s that all are involved in the worlds biggest ponzi scam ever….including our government.
Looks like they are trying to protect the big banksters from lawsuits. Then they will re-emerge all shiny and new under a new identity..
Don’t worry the banksters will be back again another day to financially rape, rob, pillage and terrorize the world. They will just go into FDIC hiding for a while and they will be back with a new face for an all new fraudulent business model to rob us all with.. Very deceptive, and very sneaky, of course.
hi dont like it one bit. we need action now not 60 days from now.ivent wells fargo is harrassing me for hamp application. but now i know to much. they lost paper work sent on feb 3rd. now they want me to resubmit., but nowi found out about people paying years for hamp and being foreclosed on any way am i suppose to take that chance???what a bunch of dogs to do this to people. dual track any advice on this matter. i have called 32 lawyers waiting on call back i am sickened to go through this. how can they lose paper work and then lie that they cant find it. i am in extreme stress her in ………..FLORIDAH
@losing my home in florida: Did you ever ask them where’s the note? Has your loan been in MERS? I would ask them to send you the proof they are due the money. Chances are they are a pretender lender. After i got the “note” riddled with fraud and what they called a deed was just a paragraph taken form the original deed., and checked my county recordings and examined all of my fraud ridden mortgage docs, I knew they couldn’t prove they were the party in due course. After that and then the HAMP FIASCO I refused to submit for an in house loan mod. I won’t deal with these criminals anymore. Now they sent me a fraudclosure complaint and they are trying to use MERS as a nominee. I knew they were full of shit. Get all of the documentation you can and then make a decision. The more fraud you can find apparently, the better.Best of Luck. I know you will find plenty of fraud.The links on the right helped me: Foreclosure Fraud Links and Foreclosure Fraud Resources . Living Lies is a really good one but they are all good resources to help you find all of zee fraud. Gotta connect those dots, dot those i’s, and cross those t’s..
EVIL CHAMELEONS