Geithner Outlines 'Resolution Authority'

Legislation would give Treasury broader powers to dissolve insolvent companies that pose systemic risk

The Obama Administration on Mar. 25 issued details on proposed legislation for a "resolution authority" that would give the President sweeping powers to dismantle or reorganize failing companies that pose a threat to the country's financial system. The proposal would also effectively shift some authority now held by the judiciary to the executive branch in an effort to speed up what could otherwise be slow-moving bankruptcy proceedings.

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