In The News

Lawsuit and national differences cast doubt over BRRD

Global Risk Regulator

29 Nov 2017

Clarity in the resolution process is vital to the successful implementation of the Bank Recovery and Resolution Directive according to Morrison & Foerster partner Sonya Van de Graaff in the Global Risk Regulator article “Lawsuit and national differences cast doubt over BRRD.”

“I think in all of this the process is of critical importance, and that is where work could be done,” she said. “The authorities have huge power to expropriate assets and it’s a fairly one-sided process, so they need to be sure there is clarity.”

She continued: “In that process there could be potential for better clarity. For example, I know that where bondholders have been aware that moves might be taken by a resolution authority to exercise their power, they have written asking that before they go ahead they talk to those bondholders, and that is shining a light on the second limb of the process [no private solution is available]. That is why bondholders are advised to write to authorities and its incumbent on authorities to fully understand the lay of the land at that point.”

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