The FDIC’s Orderly Liquidation Authority
Establish and maintain a consistent focus on the Orderly Liquidation Authority program in the Division of Complex Institution Supervision and Resolution strategic planning, to include a roadmap with established milestones for ensuring that the FDIC promptly matures the Orderly Liquidation Authority program.
Develop and consistently maintain comprehensive Orderly Liquidation Authority policies and procedures for systemically important financial companies, to include:
a. Tier I policies and procedures for framework-level activities.
b. Tier II policies and procedures for operational process-level activities.
c. Tier III policies and procedures for institution-specific planning activities.
d. Other operational program policies and procedures for Orderly Liquidation Authority resolution planning activities.
Apply Tier III policies and procedures to develop and consistently maintain institution-specific resolution planning documents for all nonbank financial companies and financial market utilities designated by the Financial Stability Oversight Council as systemically important.
Establish an action plan for promptly developing and issuing rules and regulations required by the Dodd-Frank Act, including:
a. In consultation with the U.S. Secretary of the Treasury, rules or regulations to meet the requirements of 12 U.S.C. § 5390(o)(6).
b. In coordination with the FRB, and in consultation with FSOC, rules or regulations to meet the requirements of 12 U.S.C. § 5393(d).
Ensure regular interdivisional oversight of the Orderly Liquidation Authority program and related products.
Establish a process for identifying and preparing staff who would be responsible for key Orderly Liquidation Authority resolution governance roles, such as the Executive Advisory and Oversight Group, the Tactical Project Manager, and the Onsite Liaison, to include:
a. Completing planned guidance and/or preparing a charter that will define in more detail the key resolution governance roles and responsibilities.
b. Maintaining a roster of potential staff for key resolution governance roles.
c. Informing potential staff for the key resolution governance roles of their respective Orderly Liquidation Authority resolution responsibilities.
Ensure the completed Tier I and II policies, procedures, and related guidance documents fully define the applicable Orderly Liquidation Authority roles and responsibilities of each FDIC Division and Office.
Ensure the FDIC establishes a timeframe to obtain, and then obtains, the staff resources needed to mature the Orderly Liquidation Authority resolution planning program.
Conduct and document a representative survey or other assessment of the Orderly Liquidation Authority-related skill sets existing or needed within the Division of Complex Institution Supervision and Resolution and ensure the Division’s Professional Development Plan incorporates the results.
Conduct and document an assessment of the level of staff and contractor resources needed for a baseline Orderly Liquidation Authority resolution execution team.
Regularly conduct and document Orderly Liquidation Authority general and functional training and ensure that training is clearly linked to the key components of the systemic resolution framework and processes.
Complete and implement the operational exercise program for significant Orderly Liquidation Authority-related activities, such as the systemic risk determination process, and ensure key contractor resources and FDIC Board Members are included in exercises.
Establish key performance metrics for the Orderly Liquidation Authority program with which the FDIC can measure and monitor the overall status of the program.
Ensure the FDIC regularly updates the FDIC Operating Committee and the FDIC Chairman on the overall status of the Orderly Liquidation Authority program.
Ensure the Division of Complex Institution Supervision and Resolution maintains the necessary staff and establishes a plan for conducting regular internal reviews of Orderly Liquidation Authority resolution planning activities.
Establish a mechanism to track and monitor the implementation of significant current and future recommended action items from internal and external exercises or actual resolution events.
Develop an FDIC readiness plan for a financial crisis, to include a scenario that involves the resolution of multiple concurrent failures of systemically important financial companies.