Federal Deposit Insurance Corp. Chairman Sheila Bair will leave her post July 8, a week after the official expiration of her term, the agency announced.
Bair, whose term officially ends June 30, plans to stay the extra days to finish work on the rule requiring systemically risky firms to outline how they can be unwound in the event of a collapse, a person briefed on the matter said.
The final rule on the so-called living wills is to be voted on during an FDIC board meeting in the first week of July, said the person, who spoke on condition of anonymity because the plan isn’t public.
The FDIC rule will require financial companies with at least $50 billion in assets to provide information on their debt, funding, capital and cash flows. The plan is designed to mitigate some of the risks that exacerbated the credit crisis after Lehman Brothers Holdings Inc. (LEHMQ) collapsed in 2008.
Companies failing to submit credible plans could be subject to more stringent capital, leverage or liquidity requirements as well as restrictions on their growth, activities or operations, agency officials have said.
Bair said at a Federal Reserve Bank of Chicago meeting May 5 that the Fed and FDIC must be willing to force systemically important financial firms to create “credible and actionable” living wills.
Bair, who is serving as the 19th chairman of the agency, has said she was not interested in renewing her term and intends to write a book and spend time with her family.
President Barack Obama faces several high-level regulatory vacancies this summer, including the chairman of the FDIC and the head of the new Consumer Financial Protection Bureau, which is scheduled to officially start work on July 21.
“Consistent with previous public statements, Chairman Bair has announced her intention to depart the agency following the expiration of her term,” the FDIC said today in a statement. Bair will lead her final meeting as chairman during the first week in July, the agency said.
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