In December 2013, the FDIC issued for comment a Notice providing further detail about its “single-point-of-entry” (SPOE) strategy for resolving a U.S. G-SIB under Title II. Under SPOE, losses would be imposed on the parent company’s equity and debt holders, and critical operating subsidiaries would be recapitalized using parent company resources and transferred to a bridge holding company, allowing systemically significant functions to continue uninterrupted. Today, TCH, in coordination with ABA, FSR, and GFMA, filed a letter with the FDIC supporting the SPOE strategy and recommending ways to strengthen the Notice.
You Might Also Be Interested In...
Resolution & Recovery Planning FDIC Special Assessment Proposal Lacks Analysis and Needs Adjustment to Avoid Unintended Side Effects
Resolution & Recovery Planning BPI Comments on Advance Notice of Proposed Rulemaking on Resolution-related Resource Requirements for Large Banks
Resolution & Recovery Planning New Large Bank Resolution Requirements Would Be Costly and Unnecessary
More Posts by This Author
Bank Capital and Stress Testing U.S. Bank Capital Levels: Aligning With or Exceeding Midpoint Estimates of Optimal