Under FDICIA, the ability for regulators to show forbearance is limited by a set of mandatory actions for each level of capital that an FI achieved.

Question

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FDICIA (The Federal Deposit Insurance Corporation Improvement Act) includes mandatory actions that regulators must take based on an FI's level of capitalization. This limits the ability for regulators to show forbearance towards an FI that is not adequately capitalized.

Under FDICIA, the Ability for Regulators to Show Forbearance Is