Federal Deposit Insurance Corporation March 23, 2011 – Federal Register Recent Federal Regulation Documents

The FDIC is proposing and requests comments on a rule that would implement certain provisions of its authority to resolve covered financial companies under Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ``Dodd-Frank Act'' or the ``Act''). This proposed rule (``Proposed Rule'') builds on the interim final rule published by the FDIC on January 25, 2011 (``Interim Final Rule'') to address additional provisions of Title II. The Proposed Rule addresses the following issues: the definition of a ``financial company'' subject to resolution under Title II by establishing criteria for determining whether a company is ``predominantly engaged in activities that are financial in nature or incidental thereto;'' recoupment of compensation from senior executives and directors, in limited circumstances, as provided in section 210(s) of the Dodd-Frank Act; application of the power to avoid fraudulent or preferential transfers; the priorities of expenses and unsecured claims; and the administrative process for initial determination of claims and the process for judicial determination of claims disallowed by the receiver.