The Financial Crisis of 2007-8 caused regulators globally to take steps with the aim of ensuring a repeat of the problems caused by the crisis. In the US, the Dodd-Frank Act established a mechanism for the orderly resolution of certain US systemically important financial institutions. In Europe, the EU Bank Recovery and Resolution Directive set out a common framework across the EU to manage the orderly resolution of unsound or failing financial institutions and permits intervention to ensure the continuity of systemically critical functions with minimal risk to financial stability. Agreements entered into by institutions contain many terms e.g. rating downgrade provisions, that are relevant to recovery and resolution planning. Lack of knowledge of these terms makes planning much more difficult if not impossible.
WHAT WE DO?
D2LT has solid experience and deep expertise in this area and has helped clients to identify and extract relevant key terms, in order to help them comply with recovery and resolution planning.