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RegulationsJune 24

New US rule on bank resolution under fire

A bank industry group attacks the rule for being ‘overly broad and impractical’ without leading to any meaningful improvement to relisience
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New US rule on bank resolution under fireImage: Getty Images

The Federal Deposit Insurance Corporation’s new rule to strengthen banks’ comprehensive resolution strategies has been criticised as “impractical” and insufficient to prevent further US bank failures, with pushback even coming from within the regulator’s senior ranks.

Criticism of the new rule came as the FDIC and the Federal Reserve found weaknesses in “living will” plans laid out by four of the US’s eight largest lenders.

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Barbara Pianese is the Latin America editor at The Banker. She joined from Mergermarket, where she spent four years covering mergers and acquisitions across Europe with a focus on the consumer sector. She holds an MA in International and Diplomatic Affairs from the University of Bologna having studied in Brazil and France as well.
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