Federal Deposit Insurance Corp. General Counsel Michael Krimminger, a senior adviser to former Chairman Sheila Bair during the 2008 financial crisis, is leaving the agency to become a partner in the law firm of Cleary Gottlieb Steen & Hamilton in Washington.
Systemically important financial institutions in the U.S. may have to simplify their business if they can’t provide viable plans for unwinding themselves in a crisis, a senior Federal Deposit Insurance Corp. official said.
In the words of Sheila Bair, the departing chairman of the Federal Deposit Insurance Corp., the era of too-big-to-fail banks isn’t just ending -- it’s already over. Consider her statement two weeks ago, in a news release heralding the creation of a committee to advise the agency on how to deal with large, dying financial firms:
The U.S. overhaul of Wall Street gave regulators a power they had called for since the collapse of Lehman Brothers Holdings Inc. : the authority to shut too-big- to-fail firms. Now the Federal Deposit Insurance Corp. has to figure out how to use it.
Bank of America Corp., Citigroup Inc. and Credit Suisse Group AG were among 16 of the world’s biggest banks sued by the U.S. Federal Deposit Insurance Corp. for allegedly manipulating the London interbank offered rate from 2007 to 2011.
U.S. banks would have to restructure how they handle deposits in their U.K. branches under a rule proposed by the Federal Deposit Insurance Corp. in answer to a U.K. regulatory push for more depositor protections.