Can the “Single Point of Entry” strategy be used to recapitalize a systemically important failing bank?
P Kupiec, P Wallison - Journal of Financial Stability, 2015 - Elsevier
Abstract The Single Point of Entry (SPOE)—the FDIC strategy to implement its new Dodd–
Frank Orderly Liquidation Authority (OLA)—promises to reduce the financial market turmoil
caused by the failure of a large complex financial institution by using parent holding
company resources to recapitalize its large failing subsidiary banks. We identify legal and
financial impediments that may prevent the use of a SPOE strategy for this purpose. Dodd–
Frank does not authorize bank recapitalizations through SPOE or otherwise, and the OLA …
Frank Orderly Liquidation Authority (OLA)—promises to reduce the financial market turmoil
caused by the failure of a large complex financial institution by using parent holding
company resources to recapitalize its large failing subsidiary banks. We identify legal and
financial impediments that may prevent the use of a SPOE strategy for this purpose. Dodd–
Frank does not authorize bank recapitalizations through SPOE or otherwise, and the OLA …