The Wall Street Reform and Consumer Protection Act, H.R. 4173, and the draft Restoring American Financial Stability Act of 2009 would create a systemic dissolution fund to ensure that the costs of future government assistance for large, failing financial firms are borne by other financial firms, not the taxpayers.

Requiring systemically important institutions to draw up living wills could reduce the pressure on government authorities to provide assistance when those institutions fail. While the idea has broad support, its implementation raises several questions: how should the ‘systemically important’ group be defined? How would living wills function when national laws are not harmonized? Who will supervise them?

r i s q u e s & r g l e m e n t a t i o n 45 dcembre 2009 n 719 Revue Banque Fabrice Demarigny Avocat la cour, Directeur des activits de marchs de capitaux Groupe Mazars Pierre-Yves Thoraval Directeur gnral Promontory Financial Group France Les autorits britanniques (Alistaai Darling, chancelier de lchiquiier et Adai

The details and timing of new capital and liquidity requirements are becoming clearer, particularly after the September 25 Pittsburgh Summit where G-20 leaders endorsed much of the work of international bank supervisors in these areas. 

Mr. Ludwig testified before the United States Senate on Strengthening and Streamlining Prudential Banking Supervision.