FDIC and BoE Signal Significant Cooperation on Resolution Issues

On December 10, 2012, the Federal Deposit Insurance Corporation and the Bank of England released a joint paper entitled “Resolving Globally Active, Systemically Important, Financial Institutions” outlining a resolution strategy for global systemically important financial institutions. This release coincided with the participation of Paul Tucker, BoE Deputy Governor for Financial Stability, in the FDIC’s recent Systemic Resolution Advisory Committee meeting addressing cross-border cooperation and resolution. This paper and Deputy Governor Tucker’s recent comments demonstrate the continuing cooperation between the FDIC and the BoE and are signs of progress towards both regulators’ stated goal of ending “Too Big to Fail.” This memorandum summarizes and discusses the implications of these recent efforts.