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Contingent Capital in European Union Bank Restructuring

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

Christoph Henkel

Mississippi College - School of Law

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

Mississippi College - School of Law ( email )

151 East Griffith Street
Jackson, MS 39201
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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