The creation of effective resolution regimes for banks was a cornerstone of the regulatory overhaul after the financial crisis of 2007 and 2008. Arguably, many regulators shied away from shutting down ailing banks also because of a lack of suitable laws that would allow for an orderly resolution with-out financial stability implications. Making failure an option instead would not only preserve public finances ex post but also reestablish market discipline ex ante.
Induced by the Financial Stability Board (FSB), jurisdictions around the world amended their regulatory frameworks to provide for workable solutions to wind-down failing banks. The EU introduced its version of a special resolution regime for financials in the Bank Recovery and Resolution Directive (BRRD) and supra-nationalized parts of the procedure in the Single Resolution Mechanism (SRM). Ongoing efforts to improve the applicability of the regime also for large banks include the implementation of the FSB’s Total Loss Absorbing Capacity (TLAC) standard and its close European cousin, the Minimum Requirements for Own Funds and Eligible Liabilities (MREL).
The expert panel will discuss whether the objectives of the reforms have been achieved and, as the case may be, what needs to be done to further improve the regulatory framework bearing on bank resolution.
IMFS Working Lunch
Tobias Tröger, Danny Busch and Pierre-Henri Conac
"Bank Resolution - Will it Work?"
Moderator: Theodor Baums
Monday, March 27, 2017
HZ 13, Hörsaalzentrum
Goethe University, Campus Westend
Frankfurt am Main
Please register for this event at lectures[at]imfs-frankfurt[dot]de.
Danny Busch is Professor of Financial Law and Director of the Institute for Financial Law, Radboud University, Nijmegen, the Netherlands. He is Visiting Professor at Università Cattolica del Sacro Cuore di Milano, Visiting Professor at Università degli Studi di Genova and a Member of the Dutch Banking Disciplinary Committee (Tuchtcommissie Banken). He is extensively engaged in the provi-sion of training to attorneys-at-law, financial regulators and financial professionals and author of many articles in the field of financial and commercial law, and editor of several books, including A Bank’s Duty of Care (with C.C. van Dam), Hart, 2017; Agency Law in Commercial Practice (with L. J. Macgregor and P. Watts), OUP, 2016; European Banking Union (with G. Ferrarini), OUP, 2015; Alternative Investment Funds in Europe (with L.D. van Setten), OUP 2014; and Liability of Asset Managers (with D.A. DeMott), OUP 2012.
Pierre-Henri Conac is Professor of Commercial and Company Law at the University of Luxembourg where he founded the Master 2 in European Banking and Financial Law (LLM) From 1999 to 2006, he was Associate Professor of Law at the University of Paris 1 (Panthéon-Sorbonne). Pierre-Henri Con-ac is the author of ‘The regulation of securities markets by the French Commission des opérations de bourse (COB) and the US Securities and exchange commission (SEC)’ which was awarded several prizes. His research areas deal principally with securities law, company law, and comparative law in these fields, especially with the United States. From 2011 to 2016 the Eu-ropean Securities and Markets Authority (ESMA), appointed him to its consultative Securities and Markets Stakeholder Group (SMSG). He also advised the Luxembourg government on the 2014 Bank recovery and resolution directive and has been following this topic since.
Tobias H. Tröger holds since 2011 the Chair of Private Law, Trade and Business Law, Jurisprudence at Goethe-University Frankfurt am Main and is an Associate Professor at the IMFS. He holds a Ph.D.-degree from the Eberhard Karls University of Tübingen, where he was awarded the qualifica-tion of post-doctoral lecturer, and an LL.M. from Harvard Law School. Tröger is Program Director Corporate Finance at the Research Center Sustainable Architecture for Finance in Europe (SAFE) in Frankfurt and Chairman of the Board of the European Banking Institute (EBI). He is an advisor to the European Parliament on matters regarding the Single Supervisory Mechanism (SSM). During recent years he taught as a visitor at various universities, inter alia at Stanford Law School and The University of Pennsylvania Law School.
Theodor Baums has the Endowed Chair for Civil and Business Law at the Institute for Law and Finance (ILF) at Goethe University, which he founded and where he now serves as a member of the management board. He was the chairman of the Government Commission on Corporate Governance, a member of the Advisory Board of the Federal Financial Supervisory Authority (BaFin) , counsel to the the EC Commission on company law, and ethics advisor to the management board of the Deutsche Bundesbank.Currently he is a member of the German governments commission on the Corporate Governance Code. Baums is co-editor of several scientific journals and publication series. He has published more than 150 books and articles on corporations, civil and antitrust law. Prof. Baums has frequently advised the German Federal Government and Federal Parliament on questions concerning company and securities market regulation and was also an advisor for international organizations like the World Bank and the OECD. In 2006, he was awarded the Order of Merit 1st class of the Federal Republic of Germany. He is a Professeur associé of the University of Luxemburg as well as Dr. rer. pol. h.c. und Dr. iur. h.c. He has been a Founding Professor of the IMFS.