The Resolution of Dealers and Other Banks: Implications for Investors and Counterparties

London, UK

Cleary Gottlieb partner Bob Penn and counsel Knox McIlwain presented a seminar for members of the Alternative Investment Management Association to discuss the implications for investors and counterparties of the new regulatory landscape and approach to financial company insolvency and resolution.

The seminar addressed:

• Resolution strategies for different banks, from global dealers to regional banks, and how they may differ from jurisdiction to jurisdiction.
• The single-point-of-entry bail-in strategy for global dealers and what it means for investors, creditors, counterparties and depositors.
• Implications of different resolution strategies for investors in banks, including under TLAC bonds, Tier 2 capital and other regulatory capital instruments.
• Changes to the treatment of swaps, repos and related agreements during resolution, including the introduction of stays on early termination rights.
• Key legislative and regulatory developments to watch as resolution regimes are finalized around the globe.