The Federal Deposit Insurance Corporation (FDIC) has approved a proposal to seize and unwind big banks, The New York Times reports. The proposed rules are intended to set up an orderly process to unwind large financial institutions, including big banks, financial firms and large nonfinancial companies that pose a systemic risk.

The rules detail how creditors can file a claim and how those claims will be addressed. Under the rules, the banking regulator can also recover the compensation of people who are substantially responsible for the failure of a covered financial company.

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Click here for additional coverage from The Wall Street Journal.