Press Release: FDIC Systemic Resolution Advisory Committee to Meet Next Week
The Federal Deposit Insurance Corporation’s (FDIC’s) Systemic Resolution Advisory Committee (SRAC) will convene on Tuesday, December 5, 2023, at 9:00 am ET. The purpose of this meeting is to discuss the resolution of systemically important financial institutions. The SRAC provides advice and recommendations to the FDIC on various policy issues related to the orderly resolution of these institutions.
Why is the meeting important?
The meeting will focus on the FDIC’s resolution authority, granted under the Dodd-Frank Act of 2010, to manage the orderly resolution of large and complex financial institutions whose failure could pose a threat to the stability of the U.S. financial system. Additionally, the meeting will address the FDIC’s authority under the Federal Deposit Insurance Act to handle the failure of regional banks that could have implications for financial stability.
The role of the SRAC
The SRAC plays a significant role in providing guidance to the FDIC. It is composed of experts with diverse backgrounds in managing complex firms, administering bankruptcies, and working in the legal, financial, regulatory, and academic fields. The committee’s expertise enables them to advise on the best practices and policies regarding the resolution of systemically important financial institutions.
New members appointed to the SRAC
The FDIC has recently named two new members to the SRAC, bringing the total number of committee members to 19. The new members are Sir Jon Cunliffe, the Former Deputy Governor for Financial Stability for the Bank of England and Former UK Permanent Representative to the European Union, and Elke Koenig, the Former Chair of the Single Resolution Board (SRB) and Former President of the German Federal Financial Supervisory Authority (BaFin).
Current members of the SRAC
In addition to the new members, the SRAC consists of 17 current members. Some of the notable members include Sheila Bair, Former Chairman of the Federal Deposit Insurance Corporation; Dr. Ben S. Bernanke, Former Chairman of the Board of Governors of the Federal Reserve System; and Jay Clayton, Former Chairman of the U.S. Securities and Exchange Commission (SEC). The full list of current members can be found on the SRAC’s webpage.
Open meeting
The virtual meeting of the SRAC will be open to the public and can be accessed via a live webcast. Interested parties can tune in to gain insights into the discussions surrounding the resolution of systemically important financial institutions. Public access to these meetings allows for transparency and ensures that important policy decisions are made in the best interest of all stakeholders.
Frequently Asked Questions
1. What is the FDIC Systemic Resolution Advisory Committee?
The FDIC Systemic Resolution Advisory Committee (SRAC) is a committee that provides advice and recommendations to the Federal Deposit Insurance Corporation (FDIC) on a wide range of policy issues related to the resolution of systemically important financial institutions. The committee is composed of experts from various fields, including finance, law, academia, and regulation.
2. Why is the resolution of systemically important financial institutions important?
Systemically important financial institutions are those that, due to their size, complexity, or interconnectedness, could pose a significant risk to the stability of the financial system if they were to fail. The resolution of these institutions in an orderly manner is crucial to prevent disruptions to the broader economy and safeguard financial stability.
3. What is the role of the FDIC in the resolution of these institutions?
The FDIC has been given authority by the Dodd-Frank Act of 2010 to manage the resolution of systemically important financial institutions. This includes developing strategies and plans for their orderly resolution. The FDIC also has the responsibility to manage the failure of regional banks that could have implications for financial stability.
4. Who are the new members appointed to the SRAC?
The new members appointed to the SRAC are Sir Jon Cunliffe, the Former Deputy Governor for Financial Stability for the Bank of England and Former UK Permanent Representative to the European Union, and Elke Koenig, the Former Chair of the Single Resolution Board (SRB) and Former President of the German Federal Financial Supervisory Authority (BaFin).
5. How can the public access the SRAC meeting?
The SRAC meeting will be conducted virtually and will be available to the public via a live webcast. Interested parties can tune in to gain insights into the discussions surrounding the resolution of systemically important financial institutions. The webcast provides transparency and ensures that important policy decisions are made in the best interest of all stakeholders.
For more information about the FDIC Systemic Resolution Advisory Committee and its work, visit the committee’s webpage.
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