Limits of Private Sector Solutions for Banks: Recent UK Rights Issues

31 Pages Posted: 2 Nov 2008 Last revised: 28 Apr 2011

Eilis Ferran

University of Cambridge - Faculty of Law; European Corporate Governance Institute (ECGI)

Date Written: October 27, 2008

Abstract

This article reviews regulatory concerns prompted by the difficulties that were encountered by four British banks in making rights issues and other pro rata equity offerings between April and August 2008 against a background of adverse market conditions. Its conclusion that rights issues are too cumbersome and too time-consuming swims with the mainstream of current thinking. The article contributes to the debate by considering options for change it is realistic to pursue given the confines of the existing mandatory legal framework, much of which is now set at the European level.

Keywords: banks, financial re-structuring, rights issues, pre-emption rights, disclosure

JEL Classification: G18, G21, G28, G32, G34, G38, K22, K23

Suggested Citation

Ferran, Eilis, Limits of Private Sector Solutions for Banks: Recent UK Rights Issues (October 27, 2008). ECGI - Law Working Paper No. 115/2008. Available at SSRN: https://ssrn.com/abstract=1290717 or http://dx.doi.org/10.2139/ssrn.1290717

Eilis Ferran (Contact Author)

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge CB3 9DZ
United Kingdom
+ 44 1223 338335 (Phone)
+ 44 1223 338340 (Fax)

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