WASHINGTON (Reuters) � Banking regulators on Monday said they are delaying a proposal that would begin putting into place how the government would use its new authority to dismantle large, collapsing financial companies in order to buy more time to gather feedback.
The board of the Federal Deposit Insurance Corp will instead be briefed by staff on issues related to the new authority and it will likely vote in early 2011 on a proposal to seek comment on specific issues.
The FDIC was considering voting on Monday on issuing an interim final rule that would have put in place some aspects of how the agency would handle the winddown of large financial firms but decided to wait so it could get more feedback from industry officials and other regulators, an FDIC official said.
Regulators who sit on the new Financial Stability Oversight Council asked the FDIC to give them more time to weigh in on the issue, the official said. The council will meet for the first time on October 1.
"Some members of the FSOC had really not had time to look it over," the official said.
On a separate issue, the agency will also vote on Monday on a final rule that would give federal protection to securitizations backed by home loans and other consumer debt if they meet higher standards and banks retain some of the risk associated with the products.
(Reporting by Dave Clarke; Editing by Andrea Ricci)
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