(NPR) "So for decades, the law gave the Federal Deposit Insurance Corporation - they're the ones that insure bank deposits - the job of dealing with a collapsing commercial bank. But during the crisis, Bear Stearns, Lehman Brothers and AIG weren't commercial banks. So when they ran into trouble, the Federal Reserve had to improvise. No one was very happy with the result.
There was lots of cries of taxpayer bailouts. So Dodd-Frank creates one set of rules that amends the bankruptcy laws to better handle the collapse of a command - complex financial institution. But at times when that just won't work, like when the whole system is melting down, there there's something called Title II of Dodd-Frank which creates orderly liquidation authority, it's called, under which the FDIC only if the Fed and the Treasury in consultation with the president say it's OK, can take over any significant financial institution, wipe out its shareholders and some of its creditors and keep it operating until it can wind down. And that has become controversial."