The ability to use the too-big-to-fail policy was curtailed by the passage of the FDICIA. To use this action today,the FDIC must get approval of a two-thirds majority of both the Board of Governors of the Federal Reserve and the directors of the FDIC and also the approval of the

Question

Quizplus · Accepted Answer

The FDIC must obtain the approval of the Secretary of the Treasury in order to use the too-big-to-fail policy today. The other options listed (Senate Finance Committee Chairperson, President of the United States, governor of the state in which the failed bank is located) do not have a direct role in the approval process for the too-big-to-fail policy.

The Ability to Use the Too-Big-To-Fail Policy Was Curtailed by the Passage