FDIC Office of Audits and Evaluations Report No. AUD-14-001 – The FDIC’s Progress in Implementing Systemic Resolution Authorities under the Dodd-Frank Act, November 2013.
“The Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) created a comprehensive new regulatory and resolution framework designed to avoid the severe consequences of financial instability. Among other things, the Dodd-Frank Act gave the FDIC broad new authorities to mitigate the risk of systemically important financial institutions (SIFIs) to the financial stability of the United States and, if necessary, to effect an orderly liquidation. The ability to mitigate risk and resolve SIFIs is critical to fulfilling the FDIC’s primary mission of upholding public confidence in the nation’s financial system. For that reason, the FDIC Chairman requested that the FDIC Office of Inspector General (OIG) review the Corporation’s progress in implementing its systemic resolution authorities under the Dodd-Frank Act. The objective of this performance audit was to determine the progress made by the FDIC in implementing the Dodd-Frank Act authorities associated with monitoring SIFIs, and resolving one, should that be necessary.”