The Federal Deposit Insurance Corp.'s inspector general said in a report Friday that there must be stronger coordination between agency divisions to carry out Dodd-Frank responsibilities dealing with the resolution of failed behemoths.
"The agency's inspector general said in a report Friday that while the FDIC has made 'significant progress' implementing its new liquidation powers for systemically important financial institutions, 'more work remains to be done to establish a robust corporate-wide capability for this critical responsibility,'" writes American Banker's Joe Adler.
The agency's watchdog, which conducted the report at the request of FDIC Chairman Martin Gruenberg, made a total of six recommendations. In addition to stronger ties between Office of Complex Financial Institutions - which the agency created following Dodd-Frank's enactment to focus on the new resolution platform - and Risk Management Supervision, the inspector general called for an enhanced strategic plan by the new resolution division, consensus building by key "corporate stakeholders" agencies related to the steps "necessary to execute effective resolution strategies," and an evaluation of appropriate staffing levels.
"We will continue to monitor the FDIC's progress in fully implementing these activities and will re-evaluate its readiness, as warranted," the IG said.
For the full piece see "FDIC Watchdog Cites Progress, Challenges in Systemic Resolution Work" (may require subscription).