• As a recognized bank regulatory expert said (name withheld because he deals with the
  Fed) wrote about this section:
  • WTF? The bankruptcy of a parent only matters if the parent has guaranteed the sub's
    liabilities or there's some sort of integrated operation that can be disrupted.
  • The FDIC's whole single-point-of-entry proposal is premised on the idea of the parent going bankrupt while the subs are ring-fenced and seamlessly moved to a bridge bank.
  • Heck, that's the FDIC receivership model already more-or-less.
  • In any case, insurance solvency regulation is based around the sub - I don't think it involves the parent at all.

w-t-w.org/en/wp-content/uploads/2015/01/Federal-Reserve-and-AIG.pdf