WASHINGTON — The Federal Deposit Insurance Corp. announced Tuesday that two European financial regulatory veterans will join the agency's previously
"The Advisory Committee will provide advice and recommendations on a broad range of policy issues regarding the resolution of systemically important financial companies," noted an FDIC release.
Sir Jon Cunliffe, the first new member, previously served as the deputy governor for financial stability at the Bank of England. He also held positions as the U.K. permanent representative to the European Union and the international economic advisor to the prime minister. The second addition to the committee is Elke Koenig, the former chair of the Single Resolution Board — the designated resolution authority for a subset of banks in the euro area — and former president of the German Federal Financial Supervisory Authority.
The FDIC noted the upcoming meeting is open for public observation via webcast.
This committee, now composed of
"The Committee will continue to provide advice and recommendations on the effects on financial stability and economic conditions of a covered company's failure and how they arise, the effects on markets and stakeholders of the activities of a covered company [and] market understanding of the structures and tools available to the FDIC to facilitate an orderly resolution of a covered company," the FDIC
The agency said the committee will also continue to examine the application of such tools to nonbank financial entities, work to coordinate global planning and preparation for the resolution of internationally active covered companies and institute resolution standards around the world.
The body also includes American bank regulatory veterans such as Sheila Bair, former chairman of the FDIC; Dr. Ben S. Bernanke, distinguished fellow at the Brookings Institution and former chairman of the Federal Reserve; and Jay Clayton, former chairman of the U.S. Securities and Exchange Commission, among others. The committee reports directly to Gruenberg.
The FDIC established the SRAC in 2011 to serve in an advisory capacity without giving the committee final decision-making authority or access to nonpublic, confidential information. Dodd-Frank authority empowers the FDIC to orchestrate the orderly resolution of large, complex financial institutions, the failure of which could pose a threat to U.S. financial stability.
Resolution planning has been top of mind for the FDIC this year after regional bank failures in March. Since then, the agency issued for comment this summer a proposal that would toughen resolution planning requirements for banks with assets of $100 billion or more. The FDIC also issued a proposed rule that would enhance resolution plans for domestic banks and foreign banks with U.S. branches with assets of between $250 billion and $700 billion, as well as announcing new
Industry trade groups that represent larger banks have criticized many of the moves as potentially harmful or excessive, while smaller banks said they would properly shift regulatory burden to riskier, more complex players.
