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AmericasMarch 21 2018

US Treasury shies away from radical overhaul of resolution process

The US Department of the Treasury released a report on February 21 detailing suggested reforms to US bank resolution mechanisms, but the recommendations were more notable for what they do not want to change than what they want to amend. By Justin Pugsley.
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What is happening?

The Orderly Liquidation Authority (OLA) – a mechanism enabling the US Federal Reserve and the Federal Deposit Insurance Corp to deal with failing systemically important banks – should be retained, according to the report from the US Treasury, entitled Orderly Liquidation Authority and Bankruptcy Reform. Not only did the report recommend keeping OLA, it praised many of its designs and functionalities.

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