Title II – Orderly Liquidation Authority

E618765

Title II – Orderly Liquidation Authority is a key section of the Dodd-Frank Wall Street Reform and Consumer Protection Act that establishes a framework for the federal government to wind down failing systemically important financial institutions outside the traditional bankruptcy process.

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Label Occurrences
Title II – Orderly Liquidation Authority canonical 1

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Statements (48)

Predicate Object
instanceOf section of federal statute ⓘ
title of the Dodd-Frank Act ⓘ
addresses resolution of nonbank financial companies posing systemic risk ⓘ
aimsTo provide market discipline for large financial firms ⓘ
reduce moral hazard associated with expectations of government bailouts ⓘ
appliesTo financial companies other than insured depository institutions ⓘ
systemically important financial institutions ⓘ
authorizes FDIC to impose losses on shareholders and certain creditors ⓘ
FDIC to repudiate burdensome contracts subject to statutory limits ⓘ
FDIC to sell assets of covered financial companies ⓘ
FDIC to take over and wind down failing financial companies ⓘ
FDIC to transfer assets and liabilities to a bridge financial company ⓘ
complements traditional bankruptcy process ⓘ
designatesAs FDIC as receiver for covered financial companies ⓘ
establishes Orderly Liquidation Fund ⓘ
establishesProcess orderly liquidation of covered financial companies ⓘ
excludes insured depository institutions resolved under the Federal Deposit Insurance Act ⓘ
grantsAuthorityTo Federal Deposit Insurance Corporation ⓘ
hasPurpose avoid taxpayer-funded bailouts ⓘ
mitigate systemic risk to the U.S. financial system ⓘ
protect financial stability and the U.S. economy ⓘ
provide an alternative to bankruptcy for failing systemically important financial institutions ⓘ
imposes haircuts on unsecured creditors after shareholders are wiped out ⓘ
priority scheme for payment of claims ⓘ
influences U.S. regulatory approach to too-big-to-fail institutions ⓘ
isCodifiedIn Title 12 of the United States Code ⓘ
jurisdiction United States federal law ⓘ
limits scope and timing of judicial review to avoid delay in resolution ⓘ
partOf Dodd-Frank Wall Street Reform and Consumer Protection Act ⓘ
prohibits use of taxpayer funds to prevent losses to shareholders or creditors ⓘ
providesFundingMechanism borrowing from the U.S. Treasury subject to limits ⓘ
relatedTo financial stability oversight ⓘ
resolution planning for large financial institutions ⓘ
systemic risk regulation ⓘ
requires assessments on eligible financial companies if proceeds are insufficient ⓘ
judicial review of the Treasury Secretary’s systemic risk determination ⓘ
repayment of Orderly Liquidation Fund from proceeds of asset sales ⓘ
requiresConsultationWith President of the United States ⓘ
requiresCriteria creditors and shareholders bear losses ⓘ
management responsible for the failure is removed ⓘ
no viable private sector alternative is available ⓘ
resolution under otherwise applicable law would have serious adverse effects on U.S. financial stability ⓘ
resolution under this title would avoid or mitigate adverse effects on financial stability ⓘ
requiresCriteria financial company in default or in danger of default ⓘ
requiresDeterminationBy Secretary of the Treasury ⓘ
requiresRecommendationFrom Board of Governors of the Federal Reserve System ⓘ
FDIC ⓘ
wasEnactedAsPartOf Dodd-Frank Act of 2010 ⓘ

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Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.

111-203 → hasComponent → Title II – Orderly Liquidation Authority ⓘ