BusinessBusiness RecoveryInvestment banks weigh into insolvency row

Investment banks weigh into insolvency row

Representative body for the investment banking industry becomes the latest to question plans to set up an insolvency special resolution regime

Investment banking envoys are warning that the government must tread
carefully if plans to set up an insolvency framework which would see crippled
banks’ retail deposits transferred to another bank are pushed through.

The plans are part of the Special Resolution Regime, which has been floated
to stakeholders by the Treasury in conjuction with the Bank of England and the
FSA, but the designs have been given a frosty reception, the
FT
reported
.

The London Investment Banking Association said that the knock-on effects
would have to be given serious consideration before any legislation was set in
stone.

‘This will be a major change to insolvency lawand practice in the UK It is
vital that unintended consequences are avoided said Liba chairman Alan Yarrow.’

The British Bankers Association and the
Association
of British Insurers
have also been high profile detractors of the plans.

‘We have drawn attention to the care that will be needed if a special
resolution regime is to be introduced for deposit-takers, to ensure that the
implications for counterparties and for the markets more generally are properly
taken into account, added Yarrow.

Further reading:

Risk
lessons from the FSA

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor