Federal Reserve Bank and Resolution: Difference between pages

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''US Banking.''
<i>Bank resolution.</i>


1.  
The special process of resolving the problem of the actual or threatened insolvency of financial firms.  


Strictly, one of the the twelve US Federal Reserve Banks that together with the [[Board of Governors of the Federal Reserve System]] constitute the [[Federal Reserve System]], the central banking system of the United States.
The speed with which value destruction occurs in a failing financial firm means that normal corporate insolvency processes and liquidation are inappropriate for such firms.  


Each Federal Reserve Bank is based in a Federal Reserve District - the District being known by a number and the name of the city where the relevant Federal Reserve Bank is located.  
As in normal insolvency, losses will be expected for some creditors.


For example, The Federal Reserve Bank of St. Louis is in District number 8.


Contrast with ‘[[recovery]]’ in which a financial firm facing difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.


2.


(Fed).
== See also ==
* [[Resolution Authority]]
* [[Liquidation and Payout]]
* [[Insolvency]]
* [[OLA]]
* [[Key Attributes]]
* [[Bailin]]
* [[Recovery]]
* [[Cash in the new post-crisis world]]
* [[Resolution weekend]]


More loosely, the central bank in the US.


 
=== Other links ===
== See also ==
[http://www.bankofengland.co.uk/financialstability/Documents/resolution/apr231014.pdf| The Bank of England's approach to resolution, October 2014]
* [[Board of Governors of the Federal Reserve System]]
* [[Central bank]]
* [[Fed funds]]
* [[Federal Reserve Board]]
* [[Federal Reserve System]]
* [[Fedwire]]
* [[Foreign Exchange Committee]]
* [[New York Fed]]
* [[OBFR]]

Revision as of 21:01, 4 August 2016

Bank resolution.

The special process of resolving the problem of the actual or threatened insolvency of financial firms.

The speed with which value destruction occurs in a failing financial firm means that normal corporate insolvency processes and liquidation are inappropriate for such firms.

As in normal insolvency, losses will be expected for some creditors.


Contrast with ‘recovery’ in which a financial firm facing difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.


See also


Other links

The Bank of England's approach to resolution, October 2014

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