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Despite Lehman's extensive losses, there were substantial valuable assets in some of its subsidiaries, especially its European operation based in London, FDIC officials say. When Lehman failed, that operation had to be dissolved under British law. The FDIC strategy would permit such an operation to continue. The American Bankers Association, the industry's biggest lobbying group, said the FDIC's strategy is an important step toward ending the doctrine of "too big to fail" and government bailouts of big financial institutions. "In any failure, it's the equity owners that should take losses," Frank Keating, the group's president and CEO, said in a statement. "This strategy assures that, but would continue the operations of the firm going forward to minimize market disruptions."
[Associated
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