The discussion draft would allow the new regime to be invoked with respect to a particular firm only with the approval of multiple agencies, and only upon a determination that the firm's failure and resolution under the bankruptcy code or otherwise applicable law would have serious adverse effects on financial stability and the U.S. economy.
I have argued on other occasions that European policy-makers ought to adopt a “Financial Compact” as a complement to Monetary Union and to the Fiscal Compact, and pursue the creation – or re-creation – of a true pan-European market for capital.