- 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.