N. Hampshire Enacts Liquidation Powers

CONCORD, N.H. - Gov. Judd Gregg has signed into law a bill granting the New Hampshire banking commissioner broad emergency powers to liquidate and transfer the assets of troubled banks.

Beginning Jan. 1, the state regulator can seek secret Superior Court sessions to close banks and to favor depositors and employees of a failed bank over creditors and stockholders in the distribution of assets.

The law was drafted by Gov. Gregg in consultation with the Federal Deposit Insurance Corp.'s chairman, L. William Seidman. The officials have discussed various bailout formulas, including an infusion of private and FDIC capital to aid ailing banks.

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