Perhaps the single most important new rule in Dodd-Frank, though, was a provision known as the “Orderly Liquidation Authority,” which provided that the government could wind down a failing financial institution. The provision might as well have been named after Lehman Brothers, because it ostensibly would have allowed the FDIC to take Lehman over to prevent it from going bankrupt. Hank Paulson has praised the rule, arguing that it would have changed the trajectory of the crisis. “We would have loved to have something like this for Lehman Brothers. There’s no doubt about it.”
Does it still exist?
