Title

Implications of Orderly Liquidation Authority -- WSJ Video Interview
Client Newsflash

Created date

8/30/2010

The Orderly Liquidation Authority established by the Dodd-Frank Act is meant to address two of the Obama Administration’s most important goals for the financial regulatory overhaul: the elimination of taxpayer bailouts and the end of “too big to fail.”  The new law replaces the Bankruptcy Code for liquidating financial companies, granting the Treasury Secretary the authority to appoint the FDIC as receiver of any financial company if certain conditions are satisfied.  It attempts to balance the goals of the bankruptcy and customer protection laws with the goals of preserving or restoring financial stability, public confidence and reasonable risk-taking that may have been disrupted as a result of a financial panic.