FOR IMMEDIATE RELEASE
ICBA Supports New FDIC Resolution Authority for Systemic Financial Firms
Washington, D.C. (August 31, 2010)- The Independent Community Bankers of America (ICBA) expressed strong support for provisions in the Wall Street Reform Act law that grant resolution authority to the Federal Deposit Insurance Corporation (FDIC) during the agency's first roundtable about implementation of the new law.
Community banks like mine are the backbone of our nation's economy now more than ever as they continue to support and drive the economic needs of their local communities in cities and towns throughout America," said C.R. "Rusty" Cloutier, former ICBA chairman and president and CEO of Mid-South Bank in Lafayette, Louisiana, who attended the roundtable on behalf of ICBA and community banks. "To further promote financial stability and end too-big-to-fail, it's critical that the FDIC have resolution powers to liquidate systemically risky institutions in an orderly manner so that they never again have the ability to nearly topple our nation's economic system, as they did nearly two years ago."
Today's roundtable was the FDIC's first step in soliciting industry opinion concerning its new resolution authority under the Wall Street Reform Act. During the financial reform debate, ICBA advocated vigorously for broad FDIC resolution authority over systemically dangerous firms and to make sure that large nonbank financial companies, such as securities brokers, dealers and hedge funds are subject to the same rigorous standards as community banks. ICBA also supports requiring contingent resolution plans for the largest and most complex insured financial institutions to ensure that they can be wound down or resolved in a timely and organized fashion.
For more information about ICBA, visit http://www.icba.org/.