Source: Law.com – Newswire
The Federal Deposit Insurance Corp.’s new power to take over and liquidate nonbank companies whose failure would jeopardize the financial system is intended as a “third way” between bankruptcy and bailout. But the prospect of a new regime for dissolving megacompanies — one with almost no judicial oversight and in which creditors’ rights are few — is sending shockwaves through the bankruptcy bar. The FDIC is tackling nearly 40 major rulemakings to flesh out the details of the law, and Wall Street is waiting anxiously.
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FDIC’s New Power to Dissolve Companies Raises Concerns
September 5, 2010 Leave a Comment
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