The Federal Deposit Insurance Corp. (FDIC) is set Monday to begin a Herculean task: creating a resolution procedure for large, systemically important firms that improves on the bankruptcy process but still resembles it enough that it does not unsettle the marketplace.

Although the bankruptcy system was largely discredited by the resulting chaos after the fall of Lehman Brothers, for creditors, it is the devil-they-know, compared with a new, untested system in the early stages of formation.

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