This site uses cookies to improve your browsing experience, gather site analytics and activity, track shopping cart contents, and deliver relevant marketing information.
View our privacy policy and manage your settings here. By using our site you agree to these terms.

2.4 Obligations of the FDIC as Receiver

<< Title II Overview

2.4 Obligations of the FDIC as Receiver

 

 


2.4.       Obligations of the FDIC as Receiver.  In taking action as a receiver the FDIC must:
 

·         determine that the actions it takes are necessary for the purposes of preserving the financial stability of the U.S., and not for the purpose of preserving the financial company;

 

·         ensure that shareholders of a covered financial company do not receive payment until after all other claims and the Orderly Liquidation Fund ("Liquidation Fund") are fully paid;

 

·         ensure that unsecured creditors bear losses in accordance with the priority of claim provisions in Title II;

 

·         ensure that management responsible for the failed condition of the covered financial company is removed, if management has not already been removed at the time the FDIC is appointed receiver;

 

·         ensure that the members of the board of directors responsible for the failed condition of the covered financial company are removed, if they have not already been removed at the time the FDIC is appointed receiver; and

 

·         not take an equity interest in or become a shareholder of any covered financial company or any covered subsidiary.  [§206]