FDIC Fights 'Too Big to Fail' With Bank 'Living Wills' - 9-15-11

Let's hope something good happens for a change ! The Dodd-Frank Act is too weak and watered down.

 http://www.law.com/jsp/cc/PubArticleCC.jsp?id=1202514421678
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"FDIC Board Approves Interim Final Rule Requiring Resolution Plans for Insured Depository Institutions Over $50 Billion" "FDIC Acting Chairman Martin J. Gruenberg said, "The FDIC's Interim Final Rule requiring insured depository institutions with assets over $50 billion to submit resolution plans is intended to serve as a complement to the joint rulemaking with the Federal Reserve under the Dodd-Frank Act that was also approved by the FDIC Board today.

These two rules will ensure the comprehensive and coordinated resolution planning for both the insured depository and its holding company and affiliates in the event that an orderly liquidation is required. The rules will also facilitate improved efficiencies and risk management practices among covered institutions as they produce and evaluate these plans."

http://www.fdic.gov/news/news/press/2011/pr11150.html
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10-18-11 ; If you have any doubt that Bank of America is in trouble, this development should settle it Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation...

Bank of America's holding company - the parent of both the retail bank and the Merrill Lynch securities unit - held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades.

That compares with JPMorgan's deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm's $79 trillion of notional derivatives, the OCC data show.

http://www.nakedcapitalism.com/2011/10/bank-of-america-deathwatch-moves-risky-derivatives-from-holding-company-to-taxpayer-backstopped-depositors.html
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Is there real hope for nullifying the now $175 Trillion that just went onto the FDIC roles in derivatives or are we going to have to lose the country for allowing this ? My understanding of Dodd-Frank (and knowing what I think of those two) makes me shudder at the possiblilites for failure of our monetary system.