A final issue that must remain on the international reform agenda is the development in major financial centers of effective resolution regimes for SIFIs. The Dodd-Frank Act gave the Federal Deposit Insurance Corporation (FDIC) authority to resolve failing financial firms where necessary to mitigate serious effects on financial stability.
The efficacy of this mechanism and market discipline more generally will both be increased if other significant jurisdictions have parallel authority, with similar expectations for how SIFIs operating in multiple jurisdictions will be resolved.