We’ve only got 36 hours to save the world! Making banks safe to fail

What can you do when a bank is declared non-viable at close of play Friday in the US so that it’s stabilized and ready to do business as usual with its customers in Asia on Monday morning? Putting your knickers over your tights probably won’t help. Unless there’s also been smart advance planning, according to Dr Thomas Huertas in his article outlining how banks can be resolvable.

Adopting what amounts to a pre-pack reorganization that can be implemented immediately there's a trigger, banks can be made safe to fail. This article, which first appeared in the Journal of International Banking & Financial Law, breaks down the statutory, contractual and practical elements required to make that work.

Filed Under: EU , JIBFL

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