FDIC’s systemic risk exception tool
But although the FDIC will be responsible for administering such a program, the
maximum amount of outstanding debt that can be guaranteed is to be determined not
by the FDIC but by the Secretary of the Treasury in consultation with the President.
And, in a significant addition, the law also requires the program to have congressional
approval in the form of a joint resolution—a requirement that essentially means
Congress must pass the equivalent of a law before the program can go forward.59 So
although Dodd-Frank provides for a program similar to the DGP, the law’s requirement
for wider political consent through congressional approval (even though the approval
would have to be considered on an expedited basis) could limit regulators’ flexibility
during a future financial crisis.
Interesting if followed..............................
Regarding the above.
Many here want a quick fix. An efficient govt that fixes it on Monday.
Remember our Founding Fathers put together an inefficient govt purposely. The market place is part of the answer and the govt makes it worse in their “solution”.
Popcorn time.