Willa Brucker was a key speaker during the session “How Will the New Bank 'Bail-In' Rules Affect You?” at this seminar hosted by the International Energy Credit Association.
Are you familiar with the new bank bail-in rules? Are you concerned about their possible impact on your organization? Are you interested in what the industry is doing to implement the rules and address their potential impact on market participants? Depending on the terms of a country’s “Bail-In” Rules, alternative financial resources will come from equity investors, bond holders and contractual counterparties who will suffer financial haircuts as part of the resolution of the failed global systemically important bank (G-SIB) and its affiliates.
G-SIBs organized in the UK and Germany have begun circulating draft amendments to certain financial contracts stemming from their regulators’ requirement that these G-SIBs obtain amendments obligating their energy counterparties’ acceptance that their contracts are subject to such countries’ “special resolution regimes.” Counterparties to derivatives, repo agreements, reverse repo agreements and securities lending and borrowing transactions with G-SIBs or their affiliates must suspend their default and cross-default rights to terminate such contracts upon the entry of the G-SIB or any of its affiliates into resolution (i.e., bankruptcy). This temporary stay allows regulators a limited time period to transfer relevant obligations to a third party with resources to perform the obligations owed to such counterparties.
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October 10-12, 2016
JW Marriott / Austin, TX