Alert June 07, 2011

FDIC Board of Directors Creates Advisory Committee on Systemic Resolutions

The FDIC’s Board of Directors created an 18-member Advisory Committee (the “Committee”) to provide advice and guidance to the FDIC on the resolution of large, systemically important institutions.  The Committee will not have decision-making authority.  The FDIC stated that the Committee is expected to provide guidance on:

  1. the effects on financial stability and economic conditions from a systemically important company’s failure;
  2. how resolution strategies would affect stakeholders and customers of these entities;
  3. tools the FDIC can use to wind down the operations of a failed organization; and
  4. tools the FDIC needs to assist in cross-border relations with foreign regulators and governments when a systemic company has international operations. The first meeting of the Committee is scheduled for June 21, 2011.