“The Federal Deposit Insurance Corp. knows it must put some meat on the bones of its process for dismantling large financial firms, but is struggling to strike the right balance between providing too much detail and not enough.
“‘One issue is flexibility versus certainty,’ says Jim Wigand, who heads the FDIC’s Office of Complex Financial Institutions. ‘But there is also the tension of providing enough information so that the marketplace and stakeholders know what to expect versus getting too granular, providing too much information and not in the right area.’
“In an interview last week, Wigand says the agency has narrowed its focus to a handful of issues and will propose a policy statement by yearend. He expects a final version within three or four months of proposal. (Assuming the agency waits until yearend — though Wigand emphasized it could come earlier — a final statement would be in place by April 30.)
“The FDIC arguably got the biggest job doled out by the Dodd-Frank Act: resolving systemically important financial companies that fail.”
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