Page 2 - Liquidation Pool News Today

Third, we created a whole new area of whats called contingent capital, debt that would convert to equity if a bank got in trouble again. >> a liquidation pool. >> no. these are just trip wires, speed bumps to make sure we dont get to a crisis. four, we put in place a requirement that said these large systemically important firms, they have got to write their own funeral plan so that if they get in trouble, theres an orderly process through bankruptcy that can unwind them appropriately. we then s...

Capital. we would be able to limit the amount of leverage, it wasnt a traditional 10-15-1. we created a whole new area of whats called contingent capital that would convert to equity if a bank got in troubles again. >> a liquidation pool? >> no. these are just trip wires, speed bumps to make sure we dont get to a crisis and, four, we put in place a requirement to say that these large firms have a right to their own funeral plan, so if they get in trouble, there is an orderly process to bankruptc...

Administration official have said to senator today take out this liquidation pool. is the bill okay then? >> there are other problems with the bill. we ought to get back to the table and have a bipartisan bill, which is what we dont have at the moment, because the bill everybody is referring to, the only one we have at the moment, came out of the committee on a straight party line vote. we need to get back to the table and get it fixed. i dont know anybody in the senate who thinks we ought not t...