This story appeared in Bank Digest.
The Federal Deposit Insurance Corporation and the Securities and Exchange Commission are jointly proposing a rule to implement provisions applicable to the orderly liquidation of covered brokers and dealers under Title II of the Dodd-Frank Act. Title II of the Dodd-Frank Act provides an alternative insolvency regime for the orderly liquidation of large financial companies that meet specified criteria. It sets forth certain provisions specific to the orderly liquidation of certain large broker-dealers, and it requires the FDIC and the SEC, in consultation with the Securities Investor Protection Corporation, jointly to issue rules to implement those provisions. Comments should be received within 60 days of publication of the proposal in the Federal Register.