Template:M summ Credit Derivatives 4.8: Difference between revisions
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[[Governmental Intervention - Credit Derivatives Provision|This]] is designed to capture ad hoc | [[Governmental Intervention - Credit Derivatives Provision|This]] is designed to capture ad hoc bail-ins and [[BRRD]] action that may be taken to prop up or rescue regulated financial institutions which have fallen upon hard times. | ||
It has lain there harmlessly biding its time for almost a decade — it did get a hit out for Banco Popular in 2017, though the circumstances were fairly straightforward there, as all subordinated debt was written down — but it looks like it is going to be right in the crosshairs when the [[Credit Suisse]] [[AT1]] litigation kicks off later in 2023. The Credit Suisse AT1 write-down was confusing enough in itself: once you get to the Prior Deliverable Obligation terms — in play because the official list still listed a long-since matured CS subordinated bond which those responsible had omitted to update — well, we’re in [[legal eagle]] heaven. | |||
Latest revision as of 09:51, 16 May 2023
This is designed to capture ad hoc bail-ins and BRRD action that may be taken to prop up or rescue regulated financial institutions which have fallen upon hard times.
It has lain there harmlessly biding its time for almost a decade — it did get a hit out for Banco Popular in 2017, though the circumstances were fairly straightforward there, as all subordinated debt was written down — but it looks like it is going to be right in the crosshairs when the Credit Suisse AT1 litigation kicks off later in 2023. The Credit Suisse AT1 write-down was confusing enough in itself: once you get to the Prior Deliverable Obligation terms — in play because the official list still listed a long-since matured CS subordinated bond which those responsible had omitted to update — well, we’re in legal eagle heaven.