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banks in distress or facing insolvency. The Banking (Special Provisions) Act 2008 was hurriedly introduced on 21 February … recourse to ordinary insolvency procedures such as those under the Insolvency Act 1986. The Act gave the Treasury wide powers …
Persistent link: https://www.econbiz.de/10013158720
Persistent link: https://www.econbiz.de/10013002918
The failure of financial institutions is often depicted as an externally-driven event in which certain triggers almost inevitably lead to the collapse of the firm. In contrast, this paper views institutional failure as a multistage process in which precautionary measures taken by the firm can...
Persistent link: https://www.econbiz.de/10013089043
to fail. Failure of a bank may trigger formal insolvency (resolution) proceedings, if there is no available option to … save it as a going concern. Bank insolvency proceedings comprise various mechanisms, instruments, and transactions to … enable resolution authorities to properly deal with a failed bank. Bank restructuring within insolvency proceedings means …
Persistent link: https://www.econbiz.de/10013052778
This paper examines the negative externalities that may occur when a large bank fails, describes the nature of those externalities, and explores whether they may be greater in a case involving a large cross-border banking organization. The analysis suggests that the chief negative externalities...
Persistent link: https://www.econbiz.de/10003730539
discharge this role. Because debt absorbs losses only when the company is put into insolvency (bankruptcy) and states were … into equity (bail it in) in advance of insolvency. However, in a second phase of reform bail in debt bids fair to become a …
Persistent link: https://www.econbiz.de/10013014261
In this paper, I suggest that the regulation of the financial system, especially if the aim is to prevent financial crises, should be focused on dealing with the consequences of the crises, not on trying to avoid their causes, although it may seem counterintuitive at first sight. Contrary to the...
Persistent link: https://www.econbiz.de/10013061343
Claims trading has become a significant and controversial feature of American bankruptcy practice over the past thirty years. This Report chronicles the rise of claims trading in the second decade of the Bankruptcy Reform Act of 1978 and analyzes the various policy concerns it raises. Most...
Persistent link: https://www.econbiz.de/10012836730
For nearly two years, the two of us have had a running discussion of the costs and benefits of automatic stays in bankruptcy for qualified financial contracts (QFCs) such as derivatives and repurchase agreements, particularly those held by systemically important major dealer banks. Under current...
Persistent link: https://www.econbiz.de/10009504439
Economic theory conjectures complementarities between the ranking of creditors in formal insolvency proceedings and the … the insolvency law, like culture and history. …
Persistent link: https://www.econbiz.de/10010425216