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Oxford Law Citator
Contents
Expand All
Collapse All
Preliminary Material
Contents—Summary
Contents
Table of Cases
European
UK
USA
Table of Legislation
International Treaties and Conventions
European Legislation
Directives
Regulations
National Legislation
Ireland
United Kingdom Statutes
United Kingdom Statutory Instruments
USA
Abbreviations
Main Text
Part I Elements of Bank Resolution Regimes
Preliminary Material
1 Introduction
A Why do we Resolve Banks?
1.01
1.02
1.03
1.04
1.05
1.06
B Operating Liabilities/Capital Structure Liabilities
1.07
C Resolution an Optional Process
1.08
D Resolution under Traditional Insolvency Laws
1.09
1.10
E Solving the Problem of ‘Too Big to Fail’
1.11
1.12
2 Bank Resolution Techniques
2.01
2.02
2.03
2.04
2.05
A Types of Banks
2.06
Small deposit-taking institutions
2.07
Larger deposit-taking institutions with little or no long-term wholesale funding
2.08
Wholesale institutions with little or no deposit funding
2.09
Large institutions with substantial wholesale and deposit funding bases
2.10
B Implementation
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24
C Bank Groups
2.25
2.26
2.27
2.28
D Resolution as an Invasion of Private Rights
2.29
2.30
2.31
2.32
2.33
2.34
2.35
E Deposit Insurance in Resolution
2.36
2.37
2.38
2.39
2.40
2.41
2.42
2.43
2.44
F Deposit Guarantee Schemes and Systemic Crises
2.45
2.46
G Depositor Preference
2.47
2.48
2.49
2.50
2.51
2.52
2.53
2.54
2.55
H Depositor Preference and ‘No Creditor Worse Off than in Liquidation’
2.56
3 Bank Resolution and Bank Groups
3.01
3.02
3.03
3.04
3.05
3.06
A Resolution in the Context of Groups
3.07
3.08
3.09
3.10
3.11
3.12
3.13
3.14
B Transmission of Capital within Groups
3.15
3.16
3.17
3.18
3.19
C Specific Bank Group Structures
3.20
3.21
3.22
3.23
3.24
3.25
3.26
3.27
3.28
3.29
3.30
3.31
3.32
3.33
3.34
3.35
3.36
3.37
D Branches and Subsidiaries
3.38
3.39
3.40
3.41
E Branch vs Subsidiary
3.42
3.43
3.44
3.45
3.46
3.47
3.48
Creditors perspective
3.49
3.50
3.51
Liquidity
3.52
3.53
3.54
3.55
3.56
Capital
3.57
3.58
3.59
3.60
3.61
3.62
4 Total Loss Absorbing Capacity
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11
4.12
4.13
4.14
A Eligibility of Liabilities as TLAC
4.15
B Public Disclosures
4.16
C Regulation of Investors
4.17
D TLAC and Groups
4.18
4.19
4.20
4.21
E Internal TLAC
4.22
4.23
F FSB TLAC Term Sheet
4.24
1— Objective
4.25
2— Covered firms
4.26
3— Minimum external TLAC requirement
4.27
4.28
4.29
4.30
4— Calibration of minimum external TLAC
4.31
4.32
4.33
4.34
5— Additional firm-specific external TLAC requirements
4.35
6— Relationship with capital requirements
4.36
4.37
4.38
4.39
4.40
4.41
7— Instruments eligible for inclusion in external TLAC
4.42
4.43
8— Issuer
4.44
4.45
9— Eligibility criteria
4.46
4.47
10— Excluded liabilities
4.48
11— Priority
4.49
4.50
4.51
4.52
12— Redemption restrictions
4.53
13— Governing law
4.54
14— Triggers (for externally issued TLAC)
4.55
15— Regulation of investors
4.56
16— Conformance period
4.57
4.58
4.59
4.60
17— Internal TLAC
4.61
4.62
4.63
4.64
18— Material sub-groups
4.65
4.66
4.67
19— Size of the internal TLAC requirement
4.68
4.69
4.70
4.71
20— Core features of eligible internal TLAC
4.72
4.73
4.74
4.75
4.76
4.77
21— Public disclosure by G-SIBS of their eligible TLAC
4.78
4.79
4.80
4.81
Part II The US Resolution Regime
Preliminary Material
5 Fundamentals of Resolution Authority
A History
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08
5.09
B Core Resolution Powers
5.10
5.11
C Claims Process
5.12
D Need for Speed
5.13
5.14
E Resolution vs Bankruptcy
5.15
5.16
F Subordination of Capital Structure Liabilities
5.17
5.18
5.19
5.20
5.21
5.22
6 Resolution of Insured Depository Institutions
6.01
6.02
A Background
Chartering authorities
6.03
6.04
6.05
Deposit insurance
6.06
Structure of the FDIC’s resolution unit
6.07
6.08
Administrative nature of resolution process
6.09
6.10
6.11
Limited legal guidance
6.12
6.13
B Supervisory and Other Tools to Ensure Resiliency
6.14
Capital and liquidity regulation
6.15
6.16
6.17
Source of strength obligations
6.18
6.19
6.20
Prompt corrective action
6.21
6.22
6.23
6.24
Lender-of-last-resort facilities
6.25
6.26
6.27
Deposit insurance
6.28
Supervision, examination, and enforcement
6.29
6.30
Enhanced prudential standards
6.31
6.32
Early remediation
6.33
Recovery plans
6.34
C Resolution Process
6.35
Grounds for closing an insured institution
6.36
6.37
6.38
6.39
6.40
6.41
Effect of appointment
6.42
Timing of appointment
6.43
FDIC’s statutory duties
6.44
6.45
Purchase and assumption sale transaction
6.46
6.47
6.48
6.49
Bridge banks
6.50
6.51
Recapitalization (bail-in) within resolution
6.52
6.53
6.54
Break-up and sell strategy
6.55
Orderly wind-down strategy
6.56
Liquidation strategy
6.57
D FDIC-assisted P&A Sale Transactions
6.58
Initiation of the process
6.59
Bidding process
6.60
6.61
6.62
6.63
6.64
6.65
6.66
6.67
6.68
6.69
6.70
6.71
6.72
Transaction structure
6.73
6.74
6.75
6.76
6.77
6.78
6.79
6.80
6.81
6.82
6.83
6.84
6.85
6.86
6.87
Marketing the structure
6.88
6.89
6.90
6.91
6.92
6.93
6.94
6.95
6.96
E Claims Process and the FDIC Super Powers
6.97
6.98
6.99
Depositor preference rule
6.100
6.101
6.102
Contingent claims not provable
6.103
6.104
High bar to enforceability of contracts
6.105
6.106
6.107
6.108
6.109
Power to enforce contracts despite ipso facto clauses
6.110
6.111
6.112
Repudiation of contracts
6.113
6.114
6.115
6.116
6.117
6.118
6.119
Special treatment for QFCs
6.120
6.121
6.122
6.123
6.124
6.125
Security interests
6.126
6.127
6.128
6.129
Discretion to discriminate among similarly situationed creditors
6.130
6.131
6.132
6.133
Super priority over fraudulent transfers by insider or debtor
6.134
Cross guarantees
6.135
Statute of limitations, tolling, and removal powers
6.136
6.137
6.138
6.139
6.140
6.141
7 Resolution of Non-Bank Financial Companies
7.01
7.02
A Orderly Liquidation Authority Framework
7.03
7.04
7.05
7.06
7.07
7.08
7.09
7.10
7.11
B Key Policy Issues
7.12
What’s wrong with bankruptcy?
7.13
7.14
7.15
The ‘too big to fail’/moral hazard debate
7.16
7.17
7.18
7.19
7.20
Claims process
7.21
7.22
7.23
7.24
7.25
7.26
7.27
7.28
7.29
Funding
7.30
7.31
7.32
7.33
7.34
7.35
Is the FDIC qualified?
7.36
7.37
7.38
7.39
Mandatory rule-making
7.40
7.41
7.42
Valuation issues
7.43
Remedies
7.44
Haircuts on secured claims?
7.45
7.46
Extend automatic stay to QFCs?
7.47
7.48
7.49
C Single-Point-of-Entry Strategy
7.50
7.51
7.52
7.53
7.54
7.55
7.56
D Resolution under the US Bankruptcy Code
7.57
Existing US Bankruptcy Code
7.58
7.59
Proposed new Chapter 14
7.60
7.61
7.62
7.63
7.64
Proposed new Chapter 14 2.0
7.65
7.66
7.67
7.68
7.69
7.70
Financial Institutions Bankruptcy Act
7.71
7.72
7.73
7.74
Taxpayer Protection and Responsible Resolution Act
7.75
National Bankruptcy Conference
7.76
8 Resolution Planning
A Title I Plans
8.01
8.02
8.03
8.04
B IDI Plans
8.05
8.06
C Grading the Plans
8.07
8.08
8.09
8.10
8.11
D Cross-border Cooperation and Coordination
8.12
8.13
8.14
8.15
8.16
8.17
8.18
8.19
Part III The EU Resolution Regime
Preliminary Material
9 Resolution in the European Union
A Introduction
9.01
Scope
9.02
9.03
9.04
Commencement of resolution
9.05
9.06
9.07
9.08
9.09
9.10
9.11
9.12
9.13
Financial institutions
9.14
9.15
9.16
9.17
9.18
9.19
9.20
Principles of resolution
9.21
Types of resolution
9.22
The ‘separation’ approach
9.23
The ‘bail-in’ approach
9.24
The write-down power
9.25
9.26
9.27
9.28
9.29
9.30
9.31
9.32
Valuation
9.33
9.34
B Resolution Funding under the BRRD
9.35
9.36
9.37
9.38
9.39
9.40
Depositor preference
9.41
9.42
9.43
Recapitalization
9.44
9.45
9.46
C The EU Resolution Fund
9.47
9.48
9.49
9.50
9.51
D The European Stability Mechanism
9.52
9.53
9.54
9.55
9.56
9.57
9.58
9.59
E Bail-in and the Resolution Fund
9.60
9.61
9.62
9.63
F BRRD Resolution in Practice
9.64
9.65
9.66
9.67
9.68
9.69
9.70
9.71
9.72
9.73
9.74
9.75
G State Intervention under the BRRD
State bail-out
9.76
9.77
9.78
9.79
EU restrictions on state aid in bank resolution
9.80
9.81
9.82
9.83
9.84
9.85
9.86
9.87
9.88
9.89
9.90
9.91
9.92
9.93
9.94
10 Direct Bail-in in the European Union
10.01
10.02
10.03
10.04
10.05
10.06
10.07
10.08
10.09
A How does a Direct Bail-in Work?
10.10
10.11
10.12
10.13
10.14
10.15
10.16
B Impact of Bail-in on Debt Pricing
10.17
10.18
10.19
10.20
10.21
10.22
10.23
C Bail-in, Public, and Private Recapitalization
10.24
10.25
10.26
10.27
10.28
D Bail-in, Subordinated Capital, and Contingent Capital
10.29
10.30
10.31
10.32
10.33
E Direct Bail-in
10.34
10.35
10.36
10.37
10.38
F Which Creditors should be Bailed In?
10.39
10.40
10.41
10.42
10.43
10.44
G The Limits of Bail-ins
10.45
10.46
H Loss Absorbency and MREL
10.47
10.48
11 Institutional and Cross-Border Issues
A BRRD and the Single Resolution Mechanism
11.01
11.02
B Scope
11.03
BRRD—allocation of functions
11.04
11.05
Impact of SSM Regulation
11.06
11.07
Impact of the SRMR
11.08
11.09
11.10
11.11
11.12
11.13
11.14
11.15
11.16
C Cross-border Branching
11.17
11.18
11.19
11.20
11.21
11.22
D Cross-border Issues
11.23
11.24
11.25
11.26
11.27
11.28
11.29
E Changes to the Credit Institutions (Winding-Up) Directive
11.30
11.31
11.32
11.33
F Cross-border Provisions of BRRD
11.34
11.35
11.36
G Third-country Banks
11.37
11.38
11.39
11.40
11.41
Part IV The UK Resolution Regime
Preliminary Material
12 United Kingdom—General Approach
12.01
12.02
12.03
12.04
12.05
12.06
12.07
A Resolution by Transfer
12.08
12.09
12.10
12.11
Executing a transfer
12.12
12.13
12.14
12.15
12.16
12.17
B Resolutions Involving a Bail-in
12.18
12.19
12.20
12.21
12.22
Executing a bail-in
12.23
12.24
12.25
12.26
12.27
12.28
12.29
12.30
12.31
Role of asset management vehicles
12.32
12.33
12.34
C Restructuring Phase
12.35
12.36
12.37
12.38
Bridge bank
12.39
D Exit from Resolution
12.40
12.41
E Bank Resolution and Insolvency
12.42
12.43
12.44
12.45
12.46
Role of insolvency
12.47
Banks and building societies
12.48
12.49
12.50
12.51
F Bank Administration
12.52
12.53
12.54
12.55
12.56
G Investment Bank Special Administration Regime
12.57
12.58
12.59
12.60
12.61
Firms with deposits and client assets
12.62
12.63
12.64
12.65
H Bank Insolvency
12.66
12.67
12.68
12.69
12.70
12.71
12.72
13 Powers of the UK Resolution Authority
A Scope—Banks, Groups, and Branches
13.01
Group companies
13.02
13.03
Investment firms
13.04
13.05
Branch resolution
13.06
13.07
B Powers of Pre-Resolution Intervention
13.08
13.09
13.10
13.11
13.12
13.13
Recovery plans
13.14
13.15
13.16
13.17
13.18
C Triggering Resolution
13.19
13.20
The conditions
13.21
D Factors Common to Assessing General Conditions 1 and 2
13.22
13.23
E Assessing General Condition 1
13.24
Legal status
13.25
Location of offices
13.26
Business conducted in a prudent manner, including appropriate resources
13.27
Effective supervision
13.28
Suitability
13.29
F Assessing General Condition 2
Timing
13.30
Consultation with Bank and Treasury
13.31
Write-down powers and Condition 2
13.32
13.33
13.34
G Assessing General Conditions 3 and 4
13.35
13.36
H Valuation Mechanisms and Creditor Safeguards
Valuation
13.37
13.38
13.39
13.40
Prior to resolution
13.41
During resolution
13.42
13.43
13.44
13.45
Post-resolution
13.46
13.47
13.48
NCWOL and valuations
13.49
13.50
13.51
13.52
13.53
13.54
13.55
I Variation of Contractual Protections
13.56
Suspension of obligations
13.57
13.58
13.59
Suspension of security rights
13.60
13.61
Suspension of termination rights
13.62
13.63
13.64
13.65
13.66
13.67
Permanent suspension of termination rights
13.68
13.69
13.70
13.71
13.72
J Other Resolution Powers
Intra-group financial support
13.73
13.74
13.75
13.76
13.77
Administrators in recovery
13.78
Powers to make regulations about tax
13.79
The power to change law
13.80
13.81
13.82
13.83
Miscellaneous obligations on Bank and Treasury
13.84
13.85
14 Property Transfers and Bail-in under the Banking Act
A Powers
14.01
14.02
14.03
14.04
The stabilization powers and interference with contractual rights and expectations
14.05
14.06
14.07
Dunfermline Building Society
14.08
14.09
Sale of business/transfer to private sector purchaser
14.10
Bridge bank/bridge institution and asset separation tools
14.11
14.12
14.13
14.14
14.15
Transfer to Public Ownership
14.16
14.17
B Private Sector Transfers
14.18
The decision to exercise the private sector transfer powers
14.19
Special conditions for exercising the private sector transfer powers
14.20
C Transfer to a Bridge Bank
14.21
14.22
The decision to exercise the bridge bank transfer powers
14.23
14.24
14.25
Establishing and governing bridge banks
14.26
14.27
14.28
14.29
14.30
D Transfer to an Asset Management Vehicle
14.31
14.32
The decision to exercise the Asset Management Vehicle Transfer Powers
14.33
14.34
14.35
Establishing and governing Asset Management Vehicles
14.36
14.37
E Temporary Public Ownership Transfers
14.38
14.39
Special conditions for exercising the Temporary Public Ownership Transfer Power
14.40
14.41
14.42
Bank Holding Companies
14.43
14.44
14.45
Governing institutions in temporary public ownership
14.46
14.47
14.48
14.49
F Transfers of Securities
14.50
‘Securities’
14.51
14.52
General effect of a share transfer instrument and share transfer order
14.53
14.54
14.55
Specified effects of a share transfer instrument and share transfer order
14.56
Continuity
14.57
Conversion and delisting
14.58
Powers of governing directors
14.59
Ancillary instrument
14.60
Other provisions
14.61
Continuity of services and facilities by group companies
General continuity obligations
14.62
14.63
Special continuity obligations
14.64
14.65
Continuity obligations and onward share transfers
14.66
Share transfer instruments
Characteristics
14.67
14.68
Supplemental share transfer instruments
14.69
Resolution company share transfer and reverse share transfer instruments
14.70
14.71
Share transfer orders
Characteristics
14.72
14.73
Supplemental share transfer orders
14.74
Onward share transfer orders and reverse share transfer orders
14.75
14.76
G Transfers of Property
14.77
Property transfer instruments
Characteristics
14.78
14.79
Supplemental property transfer instruments
14.80
Resolution company onward property transfer instruments and reverse property transfer instruments
14.81
14.82
Temporary Public Ownership Property Transfer Orders and Reverse Property Transfer Orders
14.83
14.84
‘Transferable property’
14.85
14.86
General effect of a property transfer instrument or order
14.87
14.88
Specified effect of a property transfer instrument or order
Continuity
14.89
Licences
14.90
Trusts
14.91
Incidental provisions
14.92
Continuity of services and facilities by group companies
General continuity obligations
14.93
Special continuity obligations
14.94
14.95
Continuity obligations and onward property transfers
14.96
Further powers
14.97
H Restrictions of Partial Property Transfers
14.98
14.99
14.100
14.101
The Transfers Order
The general provisions
Application
14.102
Protected arrangements
Effect of transfers of foreign property or rights or liabilities relating to foreign property
14.103
14.104
Consequences for breach of the Transfers Order: Article 12
14.105
14.106
14.107
The restrictions in the Transfers Order
The set-off and netting restrictions
14.108
14.109
The community law restrictions
14.110
The secured liabilities restrictions
14.111
14.112
The capital market arrangements restrictions
14.113
14.114
14.115
14.116
The financial markets restrictions
14.117
14.118
14.119
The trusts restriction
14.120
Additional restrictions on reverse transfers
14.121
I Compensation Orders
14.122
14.123
14.124
Compensation scheme orders
Characteristics
14.125
Circumstances for making compensation scheme orders
Private sector transfers
14.126
Resolution company transfers
14.127
Temporary public ownership transfers
14.128
Bail-in option
14.129
Resolution fund orders
Characteristics
14.130
14.131
Circumstances for making resolution fund orders
Private sector transfers
14.132
Resolution company transfers
14.133
Temporary public ownership transfers
14.134
Third-party compensation orders
Characteristics
14.135
14.136
Circumstances for third-party compensation orders
Private sector transfers
14.137
Resolution company transfers
14.138
Temporary public ownership transfers
14.139
Resolution instrument
14.140
Third-party compensation orders: partial property transfers
14.141
14.142
The Compensation Regulations
Mandatory provisions
14.143
Appointment of independent valuer
14.144
The assessment of process
14.145
14.146
Choice of insolvency process
14.147
Valuation principles
14.148
Interim payments
14.149
14.150
14.151
Valuations provided by creditors
14.152
Optional provisions
14.153
Assumptions regarding price
14.154
Assumptions regarding treatment
14.155
Effect of transfers of foreign property or rights or liabilities relating to foreign property
14.156
Independent valuers
Appointment and removal
14.157
Powers, functions, and records
14.158
Remuneration and allowances
14.159
Valuation principles
14.160
J Bail-in and the Banking Act
14.161
14.162
14.163
14.164
14.165
14.166
14.167
14.168
14.169
Set-off and netting
14.170
14.171
14.172
14.173
Remedy
14.174
Further Material
Index
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Table of Cases
From:
Bank Resolution and Crisis Management: Law and Practice
Simon Gleeson, Randall Guynn
Content type:
Book content
Product:
Financial Law [FBL]
Published in print:
24 March 2016
ISBN:
9780199698011
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[3.215.79.204]
3.215.79.204