The Federal Deposit Insurance Corp. board is scheduled to move ahead on new resolution powers and discuss executive compensation structures at a meeting Tuesday.
The board is expected to complete a rule dealing with creditors of failed financial companies.
Under provisions in the Dodd-Frank Act giving the FDIC unprecedented power to unwind giant companies, the agency in certain circumstances can treat similar classes of creditors differently. In its October proposal, the agency said it would employ such latitude rarely — only for general creditors vital to the operation in receivership.
Examples include building maintenance, those who process payments and information technology providers. The proposal would bar shareholders, as well as holders of subordinated and long-term senior debt, from receiving such special treatment.
The board is also expected to discuss rules under Dodd-Frank for companies' reporting of incentive compensation structures. The law requires regulators to bar structures that could lead to material financial losses or compensation deemed excessive.
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