WASHINGTON — The Federal Deposit Insurance Corp. is allowing the public an extra month to weigh in on the agency's strategic plan for unwinding failed behemoths.

The FDIC said Tuesday — the original comment deadline on its so-called "single point of entry" plan — that it will now accept comments until March 20. The announcement came after industry groups sought an extension due to uncertainty over an expected Federal Reserve Board policy related to resolutions.

The "single point" strategy, which involves a failed firm's holding company closing and its subsidiaries moved to a bridge firm, is the FDIC's favored approach for executing Dodd-Frank Act powers for resolving companies the government deems too "systemic" to be unwound in bankruptcy.

Expanding on its public support for the methodology, the FDIC fleshed out the strategy in a more detailed document released in December. The paper envisions a process in which forced shareholder and creditor losses at the holding company level would help support operations of subsidiaries managed by the FDIC-supervised bridge. Following steps by the receivership to make the entity less risky, a new successor institution would then emerge from the process into the private sector.

The agency has received at least 15 public comments so far, but in mid-January six trade associations requested more time, saying it would be difficult to comment before the Fed had issued its proposal. The central bank is expected to propose rules soon on issues including the amount of debt existing firms hold at the parent company level, which is seen as a key component for ensuring "single point of entry" will work.

"The Associations believe that, in the very near future, the... [Fed] may issue one or more rulemaking proposals... regarding issues that... overlap with or are very closely related to the issues described in the FDIC Notice," the six groups said. (They included the Securities Industry and Financial Markets Association, Clearing House, American Bankers Association, Financial Services Roundtable, Institute of International Bankers and the Institute of International Finance.)

They added, "In order to provide robust and meaningful public comment on both the FDIC Notice and any closely related FRB Notice, the Associations strongly believe they need to have the benefit of reviewing all such related notices together before commenting individually on any of them."

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