The Federal Deposit Insurance Corp. (FDIC) adopted a notice of proposed rulemaking (NPR) to reduce credit risk to otherwise vulnerable securitizations, such as auto loan deals.

In the NPR, the FDIC recommended narrowing the broad reach of its Orderly Liquidation Authority (OLA) receivership powers under the Dodd-Frank Act. The OLA applies to nonbanks since Dodd-Frank grants OLA power to the FDIC as receiver for non-bank financial companies whose failure should have serious adverse impact on U.S. financial stability.

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