It seems that not all resolution conditions for failing banks are equal across the EU, with Italy managing to sidestep Europe’s resolution regime to deal with two of its failing banks.
Resolution and Recovery
EU resolution regime aces Banco Popular test amid criticism
Despite earlier concerns over the eurozone’s complex bank resolution mechanisms, the rescue of Banco Popular worked admirably, though it has raised some questions. By Justin Pugsley.
Hensarling hits back at Times article over Financial Choice Act
Jeb Hensarling attacks New York Times article claiming the Financial Choice Act makes bank failures more dangerous for the financial system.
SIFI process and OLA to be reviewed
President Donald Trump is quickly shredding any doubts over his determination to reform Dodd-Frank, having ordered a review of the orderly liquidation authority and the systemically important financial institutions designation process.
Italy bail-outs complicate Europe’s resolution plans
Concern is growing that the drawn-out and politicised process of sorting out Italy’s banking crisis could undermine the EU's bank recovery and resolution directive. By Justin Pugsley
NPLs and high costs threaten European bank profits
EU bank profits remain under pressure from non-performing loans and rising costs says the European Banking Authority.
Italy’s finance minister defends bank bailouts
The bailout of Italy’s banks draws closer as the government addresses European resolution rules and retail investor law suits
Regulators seek to make too-big-to-fail CCPs safer
While the European Commission frets over ways of insuring that too-big-to-fail clearing houses do not become the epicentre of a future financial crisis, might blockchain be a far better alternative?
Watered-down US digital legal requirements are a lost opportunity
By watering down final rules on contract data, which are crucial for the orderly resolution of failing firms, US authorities have missed an opportunity to drive greater digitisation within the industry. By Akber Datoo, managing partner, D2 Legal Technology.
AT1 coupons to be prioritised over dividends
In a bid to boost confidence in additional tier 1 instruments, the European Commission wants to prioritise coupon payouts over dividends from shares.
