WASHINGTON — The Trump administration’s examination of Dodd-Frank Act powers to allow regulators to seize and unwind a failing megabank is drawing criticism from supervisors at home and abroad.
President Trump signed an executive order last month targeting so-called Orderly Liquidation Authority, suggesting that the administration may seek to revise or eliminate such powers. Yet while the risks of curbing such powers are apparent — without them, the government may be helpless to stop the next banking crisis if the bankruptcy process proves inadequate — the benefits of removing it are more theoretical.
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