“If the Federal Deposit Insurance Corp.’s big-bank cleanup plan were a video game, the agency would be past the opening levels but still a good ways from defeating the final villain.

“That is the main takeaway from early comment letters on the agency’s blueprint for resolving systemically important firms. Bankers, industry representatives and other observers largely praise the FDIC’s favored resolution method — “single point of entry” — but say more details are needed on how it would work amid vast challenges to unwinding behemoths smoothly.

“The plan — the FDIC’s answer to implementing the Dodd-Frank Act’s “orderly liquidation authority” — would force parents to close with remaining debt and equity going to support subsidiaries in an FDIC-managed bridge company. But questions remain about whether that gives subsidiaries an unfair advantage, what a new company would look like post-resolution and how the FDIC would work with other U.S. and foreign regulators, among others.”

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