WASHINGTON — A real bank failure has yet to test the Dodd-Frank Act's resolution regime, but an industry group says its realistic mock-up shows the facility can prevent systemic fallout.

The Clearing House Association's simulated cleanup of a systemically important financial institution — referred to as "SIFI A" — under the Federal Deposit Insurance Corp.'s new "orderly liquidation authority" proves it "can be a viable mechanism for resolution of a large, complex SIFI," the association's final report says.

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