13 Resolution in the UK and US: Variations to the Same Goals

2016 ◽  
Author(s):  
Krimminger Michael
Keyword(s):  
Deposit Insurance ◽  
Global Financial Crisis ◽  
Single Point ◽  
Insurance Fund ◽  
Troubled Asset Relief Program ◽  
Point Of Entry ◽  
The Us ◽  
The Uk ◽  
Federal Deposit Insurance ◽  
National Governments

This chapter explores the US and UK’s response to the 2007–9 Global Financial Crisis. In both cases, funding for the resolution and restructuring of failing financial companies came from public sources-generally national governments and central banks funded by the private creditors or other private sources. In the UK, the resolution actions relied solely on taxpayer financing. In the US, the government’s actions relied on Federal Reserve funding, Treasury funding through the Troubled Asset Relief Program (TARP), and Federal Deposit Insurance Corporation (FDIC) funding from the Deposit Insurance Fund. The chapter also assesses the role of bail-in under the Resolution Authorities and concludes with a brief summary of the UK and EU approach to single point of entry (SPOE) strategy.

Bank Resolution and Crisis Management

2016 ◽  
Author(s):  
Gleeson Simon ◽  
Guynn Randall
Keyword(s):  
Deposit Insurance ◽  
Global Financial Crisis ◽  
Policy Makers ◽  
The Great Depression ◽  
Bank Resolution ◽  
The Us ◽  
Bankruptcy Code ◽  
The Uk ◽  
Federal Deposit Insurance ◽  
Financial Transactions

The 2008 global financial crisis ushered in the biggest explosion in new bank regulation around the world since the Great Depression. Governments and regulators have sought to put measures in place to prevent the failure of banks, but have acknowledged the need for measures to address what happens when banks fail or are threatened with failure. This book deals with the measures which European, US, and international law and policy-makers have sought to put in place to manage failure of financial institutions. Measures such as ‘bail-out’ (protecting private shareholders and creditors against losses) and ‘bail-in’ (imposing losses on shareholders and long-term creditors without causing contagion among short-term creditors) are discussed. The work includes summaries and commentary on the EU Bank Recovery and Resolution Directive, the UK resolution laws including the Banking Act 2009 and amendments to that Act, the Orderly Liquidation Authority under Title II of the US Dodd‒Frank Act, resolution under Chapter 11 of the US Bankruptcy Code, the proposed new Chapter 14 to the US Bankruptcy Code, and the bank resolution provisions of the US Federal Deposit Insurance Act. Special emphasis is given to the practical effect of such measures on financial transactions and their impact on arrangements, such as netting and set-off. There is also commentary on the role of depositor protection schemes and their role in returning money to the depositors in a failing bank.

10 The US Paradigm: Deposit Insurer as Resolution Authority

2015 ◽  
Author(s):  
Kleftouri Nikoletta
Keyword(s):  
Deposit Insurance ◽  
The United States ◽  
Insurance Fund ◽  
Single Institution ◽  
Successful Model ◽  
Bank Resolution ◽  
Large Numbers ◽  
The Us ◽  
Federal Deposit Insurance

Banking crises prompted the United States to make lending of last resort, deposit insurance, and bank resolution federal responsibilities long before banks crossed state lines in large numbers. The US system offers an existing and successful model, whereby the deposit insurance and resolution functions are combined under a single institution, the Federal Deposit Insurance Corporation. The key objective underpinning the FDIC’s choice among different resolution options is that the chosen resolution is that which would result in the least cost to the deposit insurance fund. This chapter sets out the role of the FDIC as the deposit insurer, supervisor, and resolution authority, while also examining some key principles of the US approach to dealing with failing banks.

Social work mobility in Europe: a case study from Ireland

2018 ◽  
Author(s):  
Trish Walsh ◽  
George Wilson ◽  
Erna O’Connor
Keyword(s):  
Social Work ◽  
Northern Ireland ◽  
Global Financial Crisis ◽  
Mobility Patterns ◽  
Worker Mobility ◽  
The Republic ◽  
The Global Financial Crisis ◽  
The Uk ◽  
National Governments

Social work has been viewed as one of the most nation-specific of the professions, ‘being closely tied up with national traditions, mentalities and institutions’ (Kornbeck, 2004, p 146). In addition, the political imperatives of national governments, austerity measures and managerialism drive approaches to service delivery which may supersede social work’s professional priorities. This militates against an automatic or easy transfer of professional knowledge from one country to another. In spite of this, there has been an enduring interest in developing international forms of social work that transcend national borders (Gray and Fook, 2004; Lyons et al, 2012). In this chapter, we present a case study of social worker mobility as it has evolved from the establishment of the first national social work registration body in the Republic of Ireland in 1997 with a particular focus on data from 2004-13 capturing the years leading up to, and in the aftermath of, the global financial crisis of 2008. We contrast this with the situation in Northern Ireland (NI), part of the UK and a separate and distinct political and legal entity with its own policies and practices. We draw on statistical and descriptive data provided by Irish social work registration bodies (NSWQB 1997-2011; CORU established in 2011 and NISCC, the Northern Ireland Social Care Council established in 2001) to illustrate (i) how sensitive contemporary mobility patterns are to changing economic and political factors; (ii) how rapidly patterns of mobility change and (iii) how much more mired in complexity European social work mobility is likely to be if the European project itself fractures, as is possible following the Brexit referendum vote in the UK.

Competitive aggressiveness, community banking and performance

2020 ◽  
Vol 13 (2) ◽  
pp. 221-240
Author(s):  
Jeff Stambaugh ◽  
G. T. Lumpkin ◽  
Ronald K. Mitchell ◽  
Keith Brigham ◽  
Claudia Cogliser
Keyword(s):  
Structural Equation ◽  
Deposit Insurance ◽  
Equation Modeling ◽  
Hierarchical Regression ◽  
Content Type ◽  
The Us ◽  
Competitive Aggressiveness ◽  
And Performance ◽  
Federal Deposit Insurance ◽  
Competitive Actions

PurposeThe purpose of this paper is to develop and empirically test a conceptualization of competitive aggressiveness (CA), a dimension of entrepreneurial orientation.Design/methodology/approachStructural equation modeling and hierarchical regression are employed on responses from 182 banks in the southwestern US Performance data on the banks are drawn from the US Federal Deposit Insurance Corporation's (FDIC's) Call reports.FindingsThe results indicate awareness, motivation and capability are antecedents of CA, which itself is positively related to increased market share and, in more dense markets, profitability.Practical implicationsAggressive firms exhibit certain routines that can lead to competitive actions, which assists performance in some contexts. Managers who wish to increase (or decrease) their firms' overall competitive posture can encourage (or discourage) employees from performing competitive routines such as monitoring their rivals or talking about their rivals' strategies.Originality/valueBy developing CA' conceptualization, the study advances the understanding of the antecedents of competitive behavior and makes it easier to study competition in smaller firms.

14 The Single Point of Entry Approach to Bank Resolution

2016 ◽  
Author(s):  
Jennings-Mares Jeremy ◽  
Pinedo Anna T ◽  
Ireland Oliver
Keyword(s):  
Single Point ◽  
Parent Company ◽  
Continuity Of Operations ◽  
Point Of Entry ◽  
Bank Resolution ◽  
The Uk

This chapter analyses the single point of entry (SPOE) approach to bank resolution. The strategy involves the application of resolution powers at the level of the top holding or parent company by a single resolution authority. This resolution authority would probably be located in the jurisdiction responsible for the global consolidated supervision of the banking group. The assets and the continuity of operations of subsidiaries are preserved, which avoids the need to commence distinct resolution proceedings at lower levels within the group. Although a resolution led by the home resolution authority may require assistance from a host authority, in terms of the application of resolution tools locally to support the top level resolution, or to bail-in intra-group debt claims, the principle is that no distinct, independent resolution proceedings should be required, as regards local subsidiaries of the group. The chapter addresses both the UK and US approach to SPOE.

scholarly journals The US banking system: does the size of the institution matter to its economic-financial situation?

2020 ◽  
pp. 19-19
Author(s):  
José Alejandro Fernández Fernández ◽  
Virginia Vázquez ◽  
Juan Antonio Vicente Virseda
Keyword(s):  
Neural Network ◽  
Moral Hazard ◽  
Deposit Insurance ◽  
Banking System ◽  
Factorial Analysis ◽  
Financial Situation ◽  
Financial Variables ◽  
The Us ◽  
Federal Deposit Insurance ◽  
The Relationship

This paper analyzes the relationship between the size of the entities in the US banking system and their economic-financial situation. The objective of this study is to group different economic and financial variables of the entities together into factors that characterize the US banking system and identify and identify how the factors vary according to the size of the entities. To do this, we start from the values taken by 32 economic-financial and regulatory ratios, obtained directly from the Federal Deposit Insurance Corporation (FDIC), for a period between the first quarter of 1990 and the penultimate of 2016. With this data it is performed a factorial analysis that allows synthesizing the 32 variables in 7 factors and, at the same time, obtaining relationships between these variables and the size and between themselves. Finally, through a neural network, the previous factors are hierarchized according to the influence that the size of the entities exerts on them. Among the conclusions reached, it should be noted that the loan structure is the factor that best classifies the size. It also determines the existence of a negative ?profitability-solvency? relationship with larger entities, (Assets> $ 250 B.) and smaller ones (Assets <$ 100 M.), as well as demonstrating the existence of moral hazard and the need for regulation that limits said risk (because the largest entities are the least solvent and assume the most risks).

Deposit Protection and Bank Resolution

2015 ◽  
Author(s):  
Kleftouri Nikoletta
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Global Financial Crisis ◽  
International Standards ◽  
Banking Union ◽  
European Banking Union ◽  
Bank Resolution ◽  
Protection Systems ◽  
The Uk ◽  
The Impact

The 2007–08 global financial crisis proved that the interests of bank depositors are inadequately protected. Although a vast expansion in deposit protection systems around the world followed, our understanding of the impact of those systems and their interaction with bank resolution is still in its infancy. The focus of bank resolution studies has been on the largest systemically important banks, which have wholesale creditors who would be bailed in, leaving retail depositors untouched. However, many banks rely mostly on deposits for financing, and the number of banks of this form is expected to increase. This book aims to explain and provide current material analysis of deposit protection and bank resolution regimes. The analysis is based on an examination of the traditional rationales for creating deposit insurance and bank resolution, and a specific study of the UK, EU, and US legal frameworks. It aims to offer an analysis of this topic and to cover all relevant regulations, from its origins to its most recent developments, in a systematic and thorough way. It approaches the much-desired objective of financial stability from a different angle: that of depositor protection. This book comprises ten chapters, analysing: the rationales for creating a deposit protection system; the limitations of deposit protection systems; the European deposit insurance framework; the European banking union; recent cases on deposit guarantee schemes; international standards on deposit insurance; the UK deposit insurance framework; international and European regulatory developments on bank resolution; the UK Special Resolution Regime; and the US paradigm.

London

2018 ◽  
Author(s):  
Richard Roberts
Keyword(s):  
New York ◽  
Financial Services ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Services Sector ◽  
The Us ◽  
The Global Financial Crisis ◽  
The Uk ◽  
The Impact ◽  
The Eu

At the onset of the Global Financial Crisis in 2007 London was one of the two foremost global financial centres, along with New York. London experienced a 12 per cent fall in wholesale financial services jobs in 2008–9, but a recovery got underway in 2010 and London’s wholesale financial services sector staged a wavering advance. But now there were new challenges, in particular the avalanche of financial regulation coming from the UK, the EU, the US and the G20. Fintech engendered new uncertainties. The impact of Brexit was uncertain, but mostly expected to be negative, at least in the short-term. Furthermore, there was growing competition from Asian and other financial centres. Nevertheless, London remained pre-eminent as one of the two largest global concentrations of wholesale financial services activity and at the top of the Global Financial Centres Index.

‘OTC’, ‘Financial’ Innovation, and Food Commodity Speculation

2019 ◽  
pp. 136-164
Author(s):  
Anna Chadwick
Keyword(s):  
Global Financial Crisis ◽  
Financial Innovation ◽  
Active Role ◽  
Contract Law ◽  
Financial Deregulation ◽  
The Us ◽  
The Global Financial Crisis ◽  
The Uk ◽  
Food Commodity

This chapter takes issue with the popular presentation of the OTC market as a ‘regulatory vacuum’. The analysis demonstrates that the OTC market did not emerge spontaneously in response to the risk management needs of commercial actors, nor was it created through financial ‘deregulation’. Governments in the UK and the US were influential in the construction of the market and in the creation of a new private law centred approach to the regulation of finance in the years leading up to the global financial crisis and the global food crisis. Subsequent parts of the chapter challenge the dominant characterization of the products traded within this market as being the result of ‘financial’ innovation. Highlighting some of the significant developments in contract law that have furnished market actors with the capacity to develop new derivative contracts, the chapter ultimately demonstrates that contract law has played an active role in the emergence of a new market logic oriented towards financial accumulation.

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