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Mnuchin says will take on 'orderly liquidation' after FSOC report
October 13, 2017 / 1:25 PM / 4 days ago

Mnuchin says will take on 'orderly liquidation' after FSOC report

Treasury Secretary Steven Mnuchin walks through the lobby of Trump Tower in New York City, U.S., August 15, 2017. REUTERS/Brendan McDermid

WASHINGTON (Reuters) - U.S. Treasury Secretary Steven Mnuchin on Friday said he expects to publish a much-anticipated review of the Financial Stability Oversight Council (FSOC) ahead of a review of special rules that would allow regulators to step in and unwind a troubled lender.

The FSOC comprises the country’s major financial regulators and oversees the designation of large financial firms as systemically important, a process banks have criticized as too opaque.

The “orderly liquidation authority” or OLA, introduced by the 2010 Dodd-Frank financial reform law, gives U.S. regulators the power to step in and liquidate a troubled bank instead of putting it through a traditional bankruptcy.

Many Republicans say OLA powers are excessive, while many leaders of the banking industry defend the powers.

Reporting By Patrick Rucker; Editing by Bernadette Baum

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