Category: Recovery and Resolution Plans
EU Commission to Have Power to Resolve EU Banks?
The FT is reporting that, under the terms of a discussion paper currently under review in Brussels in relation to the single resolution mechanism (SRM), the EU Commission would be given the power to resolve EU banking institutions directly, with member states merely implementing Commission decisions. This is in contrast to the agreement reached last […]
Legislation Update
On 3 June 2013, the EU Commission published an updated summary detailing the timetable for certain legislative proposals and non-legislative acts that it expects to adopt between 28 May 2013 and 31 December 2013. Of most note are the following: Initiative Current Adoption Date Previous Adoption Date (per April/May summary) Regulation on a single resolution authority […]
Legislative Update
Recovery and Resolution Directive On 29 May 2013, the Presidency of the EU Council published its latest Compromise Proposal with respect to the Recovery and Resolution Directive (RRD). Additions to the original legislative proposal are underlined and additions to the most recent compromise proposal (dated 15 March 2013) are marked in bold. EU Banking Union On 30 […]
Paul Tucker Speech on Resolution
On 20 May 2013, Paul Tucker, Deputy Governor of Financial Stability at the Bank of England gave a speech entitled “Resolution and future of finance” at the INSOL International World Congress in the Hague. Within the wider context of discussing solutions to the problem of “too big to fail”, the speech gives a useful summary […]
CCP Loss-Allocation Rules Under the Microscope
This is a link to an article in risk magazine regarding CCP recovery planning, and specifically loss allocation rules. The article highlights differing views within the market regarding the extent to which loss-allocation rules within a recovery (but not necessarily a resolution) scenario should be flexible or prescriptive in nature. The article points to a […]
Bail-In by 2016?
On 21 May 2013, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a press release detailing its negotiating position with respect to certain elements of the proposed Recovery and Resolution Directive (RRD). The negotiation position was approved by 39 votes to 6 and states that: the “bail-in” scheme should be operational by January […]
Bail-in Highlights Need for CDS Reform
Here is a link to an article which reports that ISDA has drafted a proposal to add a new credit event for financial credit default swaps. The proposal is in response to the: introduction of the European Commission’s bail-in framework (part of a package of legislation aimed at bolstering bank recovery and resolution) which will […]
EBA Consults on Recovery Planning
Introduction On 20 May 2013, the EBA published two consultation papers regarding draft Regulatory Technical Standards (“RTS”) regarding the: assessment of recovery plans; and range of scenarios to be used in recovery plans. The consultations follow the previous consultation published by the EBA on 11 March 2013 regarding draft RTS on the content of Recovery […]
EU Council Publishes Compromise Proposal on RRD
On 16 May 2013, the Presidency of the Council of the EU published a compromise proposal relating to the Recovery and Resolution Directive (RRD). Additions to the original EU Commission proposal are underlined and additions to the most recent compromise proposal dated 14 February 2013 are shown in bold.
Further Guidance on Bail-in
On 14 May 2013, the Economic and Financial Affairs Committee of the EU Council published a press release following a debate on the proposed Recovery and Resolution Directive (RRD). The discussion focused on the design of the bail-in tool, identified as a central issue. A summary of the key points include: General agreement on the […]