Cyprus-like Bail-In Provision Buried in Dodd-Frank - Silver Doctors article back up!Submitted by JO4RP on Sun, 03/31/2013 - 08:25
The resolution states that while the US would prefer large financial institutions be resolved through ordinary bankruptcy, depositor wealth confiscation will be pursued in the case of a systemically important institution (i.e. BOA, JPMorgan, Goldman Sachs, etc):
As demonstrated by the Title I requirement of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), the U.S. would prefer that large financial organizations be resolvable through ordinary bankruptcy. However, the U.S. bankruptcy process may not be able to handle the failure of a systemic financial institution without significant disruption to the financial system.
Link to FDIC & Bank of England Joint Bail-In Provision (Dec 2012): http://www.fdic.gov/about/srac/2012/gsifi.pdf