In this in-depth report, FedFin begins our detailed analysis of the sweeping financial reform legislation approved by the House on June 8. Here, we focus on language in Title I that redesigns the U.S. systemic-resolution process so that it must rely only on resolutions under the Bankruptcy Code, changed in H.R. 10 to enhance the chances that such resolutions will work as desired. We also analyze changes to systemic-regulatory authority – the legislation bars systemic designations and restructures the way U.S. regulators may spot and then address emerging risks. Consistent with this, the legislation also repeals provisions in Dodd-Frankthat allow systemic designation for financial-market utilities (FMUs). The bill also ends restrictions on current BHCs from restructuring to more advantageous charters. The impact of both of these little-noticed sections are also assessed. All of these resolution and systemic-regulatory provisions are considered in light of the rest of H.R. 10 and pending global and U.S. financial-policy actions.
The full report is available to retainer clients. To find out how you can sign up for the service, click here.