Dechert LLP


Title II of the Dodd-Frank Act is intended to ensure that Federal authorities will have the ability to address financial distress at companies that could have a significant impact on U.S. financial stability if they were resolved under otherwise applicable law, generally Federal bankruptcy law. Under the Act, Federal authorities will be able to place bank holding companies and other nonbank companies that are predominantly engaged in financial activities in receivership under Federal control, generally under the administration of the Federal Deposit Insurance Corporation. This approach creates significant uncertainties for companies that due to their size or interconnectedness with other major financial companies could potentially become the subject of a Federal receivership action. These companies and their equity holders, creditors, borrowers, customers, vendors and counterparties will have no assurance in advance as to whether financial distress at the company will be dealt with in a Chapter 11 reorganization or a Chapter 7 liquidation under the Bankruptcy Code, or a Federal receivership under Title II. The FDIC has begun the process of issuing regulations and opinions regarding how it will implement the Orderly Liquidation Authority, including how Title II authorities will be applied to securitizations. Dechert attorneys are focused on helping clients deal with the issues raised by Title II for companies that may be subject to a Title II receivership and their investors and counterparties.
RELATED AREAS Financial Services Reform Legislation and Rulemaking Title I: Regulation of Systemically Significant Companies Title X: Bureau of Consumer Financial Protection
For questions about the information on this page or market developments in the United States generally, please contact any of the Dechert attorneys listed below, or the Dechert attorney with whom you regularly work. Banking and Financial Institutions David L. Ansell David J. Harris Robert H. Ledig Thomas P. Vartanian James Waddington Broker-Dealers and Municipal Securities Elliott R. Curzon Edward L. Pittman Business Restructuring and Reorganization Allan S. Brilliant Craig P. Druehl Ethan D. Fogel Brian E. Greer Michael J. Sage Glenn E. Siegel Shmuel Vasser Corporate Governance and Executive Compensation Adam Fox Brian E. Greer Ian A. Hartman David Jones Christopher G. Karras William G. Lawlor Martin Nussbaum G. Daniel O'Donnell Stephen W. Skonieczny Derivatives and Swaps Brendan C. Fox Matthew K. Kerfoot Shmuel Vasser M. Holland West Impact on U.S. Investment Companies and Advisers Sander M. Bieber Stephen H. Bier Joseph R. Fleming Robert W. Helm Jane A. Kanter Jack W. Murphy John V. O'Hanlon Jon S. Rand Michael L. Sherman Insurance Ruth S. Epstein Jeffrey S. Puretz Labor and Employment Issues Alan D. Berkowitz Thomas K. Johnson II Non-U.S. Based Financial Institutions Karen L. Anderberg Julien Bourgeois Olivier Dumas Keith T. Robinson Jennifer Wood Private Funds Allan S. Brilliant Carl A. de Brito Susan M. Camillo Robert M. Friedman Richard Horowitz George J. Mazin Henry N. Nassau Carmen J. Romano Michael J. Sage Kevin P. Scanlan Michael L. Sherman Mark E. Thierfelder M. Holland West Kathleen Ziga Securities Enforcement William K. Dodds Kathleen N. Massey Securitization and Credit Rating Agencies David W. Forti Richard D. Jones Ralph R. Mazzeo Timothy A. Stafford Cynthia J. Williams Tax Adrienne M. Baker RELATED PRACTICE AREAS Corporate Finance Corporate Governance Corporate and Securities Finance and Real Estate Financial Institutions Financial Services Labor and Employment Mergers and Acquisitions Private Equity Private Funds	PUBLICATIONS AND RESOURCES January 19, 2011 Minimizing the Dodd-Frank Impact American Banker January 1, 2011 Systemic Regulation of Large Bank Holding Companies Under the Dodd-Frank Act Bank Accounting & Finance January 2011 Uncertainty Can Carry a High Price Investment Dealers' Digest Winter 2010 The Impact of Dodd-Frank Act on Nonbanks In-House Defense Quarterly December 2010 Putting Your Affairs in Order Investment Dealers Digest December 2010 New Rules of Regulatory Engagement American Banker November 2010 Ramping Up the Rules for Covered Financial Companies Law 360 July 2010 Dechert Summary of Title II of the Dodd-Frank Act of the American Bankers Association DECHERT ONPOINTS January 24, 2011 Financial Stability Oversight Council Proposal Includes Few Clues About Who Will Be Designated as Significant January 18, 2011 FDIC Acts to Facilitate Securitizations by Covered Financial Companies January 3, 2011 FDIC Issues Opinion Clarifying Treatment of Securitizations by Financial Companies Subject to Resolution Under Title II of the Dodd-Frank Act November 30, 2010 Is the FDIC Contemplating the Proactive Use of Living Will Authority? October 20, 2010 FDIC Begins Action on Its Super-Resolution Rules for Covered Financial Companies October 11, 2010 Financial Stability Oversight Council Seeks Public Input on Designation of Significant Nonbanks and Volcker Rule WEBINARS AND CONFERENCES February 2, 2011 The New World of Asset Securitization and Orderly Liquidation West LegalEd Center WEBINAR January 28, 2011 Legislative and Regulatory Change by Robert H. Ledig Practising Law Institute's Products of Insurance Companies in the Face of Regulatory Reform 2011 New York Conference November 10, 2010 The Four Biggest Risks Facing Financial Services Companies Today – And How to Deal with Them by Robert H. Ledig Institutional Investor Webinar November 4, 2010 Actions Against Officers and Directors of Financial Services Organizations by Thomas P. Vartanian PLI’s Financial Crisis Fallout 2010: Emerging Enforcement Trends New York conference October 17, 2010 Strategic Solution Session: Preparing for the Implementation of Financial Reform by Thomas P. Vartanian American Bankers Association 2010 Annual Convention, Business Expo and Directors’ Forum Boston CONFERENCE October 15, 2010 Action Required: Systemic Risk – Where Will You Stand? Presented by Dechert Teleconference August 18, 2010 Analysis of Proposed Banking Reform: Impact on Systemically Significant Companies, Living Wills, Enhanced Supervision, FDIC Receiverships, and Creditor Issues by David L. Ansell, Robert H. Ledig, Thomas P. Vartanian American Bankers Association Webinar July 27, 2010 Analysis of Proposed Banking Reform: Summary of the Entire New Law, Including Systemic Regulation, FDIC Receiverships, New Capital Rules and Consumer Protection by Thomas P. Vartanian North Carolina Bankers Association Webinar July 21, 2010 The Restoring American Financial Stability Act: The New Regulation of Banks & Non-banks by Robert H. Ledig, Thomas P. Vartanian Thomson Reuters Webinar July 15, 2010 Analysis of Proposed Banking Reform: New Regime for Systemically Significant Companies, Financial Stability Council and Office of Financial Research, Enhanced Prudential Regulation, Impact on Activities and the Volcker Rule by Robert H. Ledig, Thomas P. Vartanian Financial Services Roundtable Webinar