Andrew McKnight, Salans' leading Banking and Finance
Consultant, takes an in-depth look at the implications of the
Banking Act 2009
Introduction
Events over the last year or so have demonstrated the need for
governmental, regulatory and central bank intervention, sometimes
of a drastic nature, in the affairs of banks which find themselves
in financial difficulties, usually because of a lack of liquidity
but also through a deficiency in capital. Up until recently, the
matter had been dealt with in the UK in an ad hoc fashion,
sometimes using supervisory powers under the Financial Services and
Markets Act 2000 and its legislative predecessors. Generally
speaking, however, there had been no legislation in the UK peculiar
to the situation of banks in financial difficulties; thus the
insolvency of a bank fell within the general rules that relate to
insolvency, rather than under any legislation specifically tailored
for banks. For instance, in the administration of
