By Vicki Needham - 08/31/10 10:12 PM EDT
The FDIC needs to move quickly to establish an interim rule so they are prepared to deal with struggling financial firms in case the economy falls back into recession, he added.
"They shouldn't be caught flat-footed, in case something bad happens," he said.
"To further promote financial stability and end too-big-to-fail, it’s critical that the FDIC have resolution powers to liquidate systemically risky institutions in an orderly manner so that they never again have the ability to nearly topple our nation’s economic system, as they did nearly two years ago," said Rusty Cloutier, former ICBA chairman and President and CEO of MidSouth Bank in Lafayette, La., who attended the roundtable on behalf of ICBA and community banks, in a statement.
The ICBA was neutral on the financial regulatory reform legislation because of concerns over interchange fees and the new consumer protection agency.
The FDIC is soliciting public comment on how to best unwind failing firms, and will meet several times with external groups such government officials, industry executives, academics and investors will discuss the framework of how firms will be closed down.
The roundtables are "part of the FDIC's overall effort to bring transparency into the process." Earlier in the month, the FDIC announced that it was seeking input from the widest audience possible by encouraging the public to submit views via e-mail on how the FDIC should implement the new law.
In July, the FDIC announced it would hold a series of roundtables to discuss implementation issues.