The House Financial Services Committee has voted to empower the Federal Deposit Insurance Corp. to unwind troubled financial institutions that pose systemic risk.
The House panel also approved the creation of a $150 billion ‘systemic dissolution fund.’ Firms holding more than $50 billion in assets would have to contribute to the fund, Reuters reports.
While the House works its way through financial system reforms legislation, the Senate has already hit a roadblock.
The Senate Banking Committee's top Republican, Richard Shelby, R-Ala., said in the Senate Thursday that draft legislation offered last week by the committee's chair, Sen. Chris Dodd, D-Conn., needs a ‘complete rewrite.’
Among its faults, the draft ‘does not end 'too big to fail,'’ Shelby said.