WASHINGTON — Critics of regulatory reform legislation claim provisions designed to let the government unwind systemically important institutions are riddled with exceptions that would allow bureaucrats to perpetuate too-big-to-fail policies.

However, under revised House language expected to be approved by the Financial Services Committee on Wednesday the Federal Deposit Insurance Corp. could only lend to a failing company for the purpose of unwinding it. It could not provide the kind of "open bank assistance" to holding companies that it now can give their subsidiaries.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.