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This too is an invitation for the designated firm to address FSOC's financial stability concern.
The Fed becomes a regulator of the designated firm, responsible for setting prudential standards and engaging in supervision, but it has significant flexibility in fulfilling these tasks.
The only statutory structural requirement is that the designated firm must prepare a "living will" for its resolution in bankruptcy, just like the large bank holding companies that were designated as systemically important under the Dodd-Frank Act.
The Council has a mandate to offer "recommendations" to the Fed, including recommendations tailored to the designated firm's business.
But even if it could be done objectively, the logical response for a designated firm would be to dump those assets, cease risky activities, and cut ties to specific counterparties.
The challenges associated with assessing systemic risk and designation underscore the need for the Council to make every effort for its analyses to be rigorous, clear, and comprehensible to firms and to the public, and to be undertaken only when the expected benefits to financial stability exceed the costs imposed on the designated firm.
Similar(54)
One major problem with the so-called SIFI designation process is that designated firms are extremely limited in their ability to challenge the FSOC in court.
And interest rates may be liberalised for certain accounts at designated firms inside the SFTZ.What does this add up to? Louis Kuijs of RBS, a British bank, believes the pronouncement belies the hope that the borders of the SFTZ would be porous enough to expose the rest of the country to financial reform through leakage.
Is it just possible that Goldman Sachs, Paulson's alma mater, will be one of the designated firms?
Combine the SIFI designation concept with Dodd-Frank's orderly liquidation fund, a taxpayer-supported mechanism that replaces bankruptcy, and it's laughable to argue that people would not expect these designated firms to receive some kind of taxpayer support prior to failure.
The railway companies would collect ducklings, take them to the stations, ship them to London and deliver them to the designated firms, in return for a flat fee per bird.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com