The Federal Deposit Insurance Corp is talking with lawmakers about speedy legislation that could give it the power to wind down troubled bank holding companies, but not a broader range of financial firms, according to a source familiar with agency plans.
The Federal Reserve and U.S. Treasury Department have some disagreement with the FDIC about exactly what new powers the agency should gain, the source said, speaking anonymously because the meetings have been private.
The FDIC has been meeting with lawmakers' staff in recent days about so-called resolution authority. The FDIC currently has the power to resolve failed banks, but not bank holding companies.
The Treasury in March drafted a legislative proposal that names the FDIC as the resolution authority for a broad range of financial firms, but some members of the administration and bank industry groups have opposed such a plan, saying the FDIC is not properly equipped for such a large task.
(Reporting by Karey Wutkowski and Kevin Drawbaugh; Editing by Andre Grenon)