Some comments in [the March 31] article, "Fight over Ending TBTF Centers on Flexibility," unfortunately reflect some misconceptions about the resolution authority proposed in the Senate bill, as well as about the Federal Deposit Insurance Corp.'s current powers in liquidating failed banks.

Nothing in the Senate bill would allow the FDIC to bail out a large financial firm — it simply provides for an orderly wind-down to avoid a destabilizing collapse. In fact, the bill specifically requires a liquidation of the firm where shareholders and creditors bear the losses.

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.