Orderly Liquidation Authority

Orderly Liquidation Authority (OLA) is a legal framework in the United States that allows the government to intervene and manage the controlled winding down of a failing financial institution, such as a bank or investment firm. Established by the Dodd-Frank Act in 2010, OLA aims to prevent economic turmoil by ensuring that the institution's assets are sold off systematically, protecting taxpayers from bailing it out, and minimizing the impact on the economy and surrounding community. The goal is to handle the failure in a way that avoids panic and maintains financial stability.