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12 Pratt's J. Bankr. L. 3 (2016)
Resolution Policy for Bank-Centric Firms: Where Are We and Where Are We Headed

handle is hein.journals/prattjb12 and id is 7 raw text is: Resolution Policy for Bank-Centric Firms: Where Are We and Where Are We Headed? By Bimal Patel and Todd Arena* This article describes the current state of resolution policy focusing on bank-centric firms, identifying open questions that will affect the direction of policy and includes analysis of both the Title I process under Section 165(d) of Dodd-Frank and the less-discussed Federal Deposit Insurance Corporation covered insured depository institutions resolution require- ments. In a recent article' we discussed the developing framework for financial company resolution policy under the Dodd-Frank Act (Dodd-Frank).2 The discussion in that article centered on the resolution planning requirements contained in Titles I and II of Dodd-Frank that prescribe requirements and procedures under the Bankruptcy Code and Orderly Liquidation Authority (OLA) respectively. Neither of these authorities, however, affects the resolu- tion of insured depository institution subsidiaries (IDIs) of large financial companies because resolution of IDIs is governed by the Federal Deposit Insurance Act (FDI Act);3 IDIs are exempt from the resolution provisions of the Bankruptcy Code and OLA.4 Thus, for large financial firms whose business models are bank-centric, while these firms are subject to Title I resolution planning requirements and could potentially be eligible for a Title II resolution at the parent level, a significant component of resolution planning for these firms lies outside of Title I and Title II planning. To address this reality, the Federal Deposit Insurance Corporation (FDIC) promulgated a bank resolu- tion planning requirement applicable to covered insured depository institutions Bimal Patel is head of the Financial Advisory and Regulation Practice at O'Melveny & Myers LLP and is resident in Washington, D.C., and New York. He was formerly a senior executive at the FDIC, where he served until May 2015. He regularly represents financial institutions and investment funds in connection with a variety of regulatory, transactional, and litigation engagements. Todd Arena is an associate in the Project Development and Real Estate Practice group, resident in New York, where he regularly advises financial institutions on general corporate, transactional and governance matters. 1 Bimal Patel & Todd Arena, Resolution Policy: Where Are We and Where Are We Headed?, 11 PRATT'S JOURNAL OF BANKRUPTCY LAw 338 (2015). 2 Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203 (2010) (codified at 12 U.S.C. § 5301 et. seq.). 3 12 U.S.C. % 1811-1835a. 4 12 U.S.C. § 1821(c). See also, 11 U.S.C. § 109 and 12 U.S.C. § 5381(a)(8)(B).

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