The resolution authority over shadow banks given to the FDIC as part of the Dodd-Frank Act, gives the FDIC authority to:
A) provide deposit insurance to shadow banks.
B) take over and close shadow banks that could create systemic risk for the economy.
C) require shadow banks to hold more capital.
D) serve as a lender of last resort to shadow banks.

Question

Quizplus · Accepted Answer

The FDIC has the authority under the Dodd-Frank Act to take over and close shadow banks that pose a systemic risk to the economy. This is part of the resolution authority granted to the FDIC, which allows them to step in and manage the orderly liquidation of failing financial institutions in a crisis situation. The FDIC does not have the authority to provide deposit insurance to shadow banks, require them to hold more capital, or serve as a lender of last resort.

The Resolution Authority Over Shadow Banks Given to the FDIC