Introduction The Bank of England (BoE) has published a speech given by Andrew Gracie, Director of the BoE’s Special Resolution Unit, to the British Bankers’ Association on 17 September 2012 entitled “A practical process for implementing a bail-in resolution power”, a summary of which is provided below. By way of introduction, Mr Gracie noted that […]

Introduction On 18 September 2012, the European Commission published issue 4 of DG Internal Market and Services’ (DGIM) Info Letter on Post-Trading. In general, the Info Letter is a very useful summary regarding the background and current status of a number of global and EU financial services initiatives, including: a regulatory framework for CSDs; the […]

Here is a link to an RRP Timeline.  I hope that you find it useful. The yellow flags highlight some of the events which resulted in the initial RRP initiative.  The green flags represent the regulatory initiatives related to RRP, and the red flags show some of the deadlines that will apply to market participants affected […]

On 1 August 2012, HM Treasury published a consultation document entitled “Financial sector resolution: broadening the regime”.  Citing the collapses of Bear Stearns (an investment firm) and AIG (an insurer), the UK Government is reviewing the need to establish a resolution regime framework for non-banks on a more accelerated timetable than that currently envisaged in […]

Introduction On 25 July 2012, the European Association of Central Counterparty Clearing Houses (“EACH”) published a response document to the EU proposal for a directive on bank recovery and resolution (the “RRP Directive”).  The response document provides an interesting insight into the aspects of RRP which are of significance to a CCP. EACH fully supports […]

On 26 July 2012, the EU Council published a notice confirming that its Working Party on Financial Services will meet at 10:00 a.m. on 3 September 2012 to examine the Commission proposal for a Directive establishing a framework for the recovery and resolution of credit institutions and investment firms.

On 24 July 2012, EU Economic and Financial Affairs Sub-Committee A of the House of Lords European Union Committee published a call for evidence with respect to its inquiry into reform of the EU Banking Sector. The call for evidence asks for responses on a number of questions posed under the following headings: Banking reform, […]

This is a link to a short, but interesting, article in today’s FT regarding the disproportionate impact of proposed EU bail-in rules on small banks due to the requirement to restructure hybrid tier one capital to include contractual “bail-in” clauses.

On 12 July 2012, the House of Commons European Scrutiny Committee published its seventh report of the 2012/13 session.  The report provides a helpful summary of the proposed EU RRP Directive, together with the UK Government’s views on some of its central themes. The UK Government broadly welcomes the draft Directive, believing that it will […]