Posts tagged 'bank resolution'

The bail-in Spain — ECB edition

Banking crisis U-turn of the year?

From the WSJ’s Gabriele Steinhauser and Brian Blackstone: Read more

What comes first: European banking, political, or fiscal union?

It’s a commonly-held belief that the bailout of Spain’s banks won’t be sufficient to solve the country’s problems. It will increase the government’s borrowing, and may not be large enough anyway.

The real solution is fiscal banking political some kind of union. See if you can spot one of the barriers to moving forward with that: Read more

Bank resolution pay clawback plans attacked

Regulator powers to claw back up to two years of executive pay in the event of a bank failure go too far, banks have warned on the eve of the FDIC creating a formal rule on the matter, according to Reuters. Bank associations said the powers, introduced under the Dodd-Frank act, did not allow for circumstances when a bank’s failure was beyond its control and wrongly tied clawbacks to job titles over actual decisions. Regulators are sympathetic to the second objection but are unlikely to concede the powers in a climate of public anger over executive compensation. ‘Say on pay’ shareholder votes on compensation are meanwhile now being used with gusto across corporate America, says the FT.

Moody’s to operate on bank debt uplifts

Proponents of CoCos, bridge banks and bail-ins rejoice!

Moody’s announced Monday that it was analysing the impact of new resolution tools on its rating of subordinated bank debt. As surely you must know, since the financial crisis governments have shifted slowly away from full creditor protection and towards a bit of burdensharingRead more

Commerzbank fact du jour

On a day when the Markit iTraxx Senior Financials CDS index traded at a wide not seen since March 2009…

Commerzbank CDS spreads traded at their widest since 2002 on Monday, according to Markit (click chart to enlarge): Read more