The Federal Deposit Insurance Corporation (“FDIC”) has released a report entitled “The Orderly Liquidation of Lehman Brothers Holdings Inc. Under the Dodd-Frank Act.”  The report examines how the FDIC could have structured an orderly resolution of Lehman Brothers Holdings Inc. under the orderly liquidation authority of Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (“Dodd-Frank Act”) had that law been in effect in advance of Lehman’s failure. The report concludes that the powers provided to the FDIC under the Dodd-Frank Act to act decisively to preserve asset value and structure a transaction to sell Lehman’s valuable operations to interested buyers - which are drawn from those long used by the FDIC in resolving failing banks - could have promoted systemic stability and made the shareholders and creditors, not taxpayers, bear the losses. The report also concludes that, due to the powers to preserve valuable assets and operations in the Dodd-Frank Act, the FDIC liquidation of Lehman would recover substantially more for creditors than the bankruptcy proceedings - and at no cost to taxpayers.