The Special Resolution Regime For Banks

On 22nd July, the Tripartite Authorities (FSA, H.M. Treasury and the Bank of England) launched a detailed consultation on their proposals for a new Special Resolution Regime (SRR) for banks. The new legislation will introduce wide ranging and controversial new powers for the Tripartite Authorities to take control of banks and deal with their property and contracts before the formal point of insolvency is reached. The new legislation will also introduce two new insolvency procedures for banks: one specifically to deal with the management and winding up of the residue of a bank after one of the Authorities' tools in the SRR regime has been used and another new modified process which will be of general application to banks.