The FDIC’s Orderly Liquidation Authority

Submitting OIG:

Federal Deposit Insurance Corporation OIG

Date Issued:

Thursday, September 28, 2023

Agency Reviewed / Investigated:

Federal Deposit Insurance Corporation

Submitting OIG-Specific Report Number:

EVAL-23-004

Location(s):

Agency-Wide

Type of Report:

Inspection / Evaluation

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
eval-23-004.pdf	1.11 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
Establish and maintain a consistent focus on the Orderly Liquidation Authority program in the Division of Complex Institution Supervision and Resolution strategic planning, to include a roadmap with established milestones for ensuring that the FDIC promptly matures the Orderly Liquidation Authority program.
2	Open	No
Develop and consistently maintain comprehensive Orderly Liquidation Authority policies and procedures for systemically important financial companies, to include: a. Tier I policies and procedures for framework-level activities. b. Tier II policies and procedures for operational process-level activities. c. Tier III policies and procedures for institution-specific planning activities. d. Other operational program policies and procedures for Orderly Liquidation Authority resolution planning activities.
3	Open	No
Develop and consistently maintain comprehensive Orderly Liquidation Authority policies and procedures for systemically important financial companies, to include: a. Tier I policies and procedures for framework-level activities. b. Tier II policies and procedures for operational process-level activities. c. Tier III policies and procedures for institution-specific planning activities. d. Other operational program policies and procedures for Orderly Liquidation Authority resolution planning activities.
4	Open	No
Establish an action plan for promptly developing and issuing rules and regulations required by the Dodd-Frank Act, including: a. In consultation with the U.S. Secretary of the Treasury, rules or regulations to meet the requirements of 12 U.S.C. § 5390(o)(6). b. In coordination with the FRB, and in consultation with FSOC, rules or regulations to meet the requirements of 12 U.S.C. § 5393(d).
5	Open	No
Ensure regular interdivisional oversight of the Orderly Liquidation Authority program and related products.
6	Open	No
Establish a process for identifying and preparing staff who would be responsible for key Orderly Liquidation Authority resolution governance roles, such as the Executive Advisory and Oversight Group, the Tactical Project Manager, and the Onsite Liaison, to include: a. Completing planned guidance and/or preparing a charter that will define in more detail the key resolution governance roles and responsibilities. b. Maintaining a roster of potential staff for key resolution governance roles. c. Informing potential staff for the key resolution governance roles of their respective Orderly Liquidation Authority resolution responsibilities.
7	Open	No
Ensure the completed Tier I and II policies, procedures, and related guidance documents fully define the applicable Orderly Liquidation Authority roles and responsibilities of each FDIC Division and Office.
8	Open	No
Ensure the FDIC establishes a timeframe to obtain, and then obtains, the staff resources needed to mature the Orderly Liquidation Authority resolution planning program.
9	Open	No
Conduct and document a representative survey or other assessment of the Orderly Liquidation Authority-related skill sets existing or needed within the Division of Complex Institution Supervision and Resolution and ensure the Division’s Professional Development Plan incorporates the results.
10	Open	No
Conduct and document an assessment of the level of staff and contractor resources needed for a baseline Orderly Liquidation Authority resolution execution team.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Establish and maintain a consistent focus on the Orderly Liquidation Authority program in the Division of Complex Institution Supervision and Resolution strategic planning, to include a roadmap with established milestones for ensuring that the FDIC promptly matures the Orderly Liquidation Authority program.

Open

Develop and consistently maintain comprehensive Orderly Liquidation Authority policies and procedures for systemically important financial companies, to include: a. Tier I policies and procedures for framework-level activities. b. Tier II policies and procedures for operational process-level activities. c. Tier III policies and procedures for institution-specific planning activities. d. Other operational program policies and procedures for Orderly Liquidation Authority resolution planning activities.

Open