Contingent Capital in European Union Bank Restructuring

73 Pages Posted: 16 May 2012 Last revised: 18 Mar 2013

See all articles by Christoph Henkel

Christoph Henkel

Drake University Law School

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Date Written: 2012

Abstract

The uncoordinated reorganization and resolution of Systemically Important Financial Institutions in different countries pose many challenges. Contingent capital provides a viable alternative for the efficient restructuring and resolution of failing financial institutions. Contingent Capital provides a mechanism for internalizing banks’ failure costs and helps return distressed financial institutions to solvency. This article offers a comparative perspective on bank resolution and restructuring in the European Union, Switzerland, the United Kingdom and Germany and shows that Contingent Capital could play a substantial role in bank restructuring.

Keywords: contingent capital, financial institutions, banking, bank restructuring, corporate finance, corporate governance

Suggested Citation

Henkel, Christoph and Kaal, Wulf A., Contingent Capital in European Union Bank Restructuring (2012). Northwestern Journal of International Law & Business, Vol. 32, p. 191, 2012, U of St. Thomas Legal Studies Research Paper No. 12-16, Mississippi College School of Law Research Paper No. 2013-02, Available at SSRN: https://ssrn.com/abstract=2061166

Christoph Henkel

Drake University Law School ( email )

27th & Carpenter Sts.
Des Moines, IA 50311
United States

Wulf A. Kaal (Contact Author)

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

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