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Commentary to Focus 13: Parents and Subsidiaries - Especially of Banks - In Insolvency Mode

This is a commentary piece to Focus 13. As a consequence of the financial crisis, national and international regulatory bodies have started to ask what the consequences would be of a multinational banking group becoming insolvent. Numerous issues come to the forefront: How should we resolve a group? Should individual entities be resolved separately, especially if these are organized under different legal regimes, or would a single regime be preferable? What measures can be taken to avoid disorderly dissolution? Group governance would play a central role in finding adequate and timely solutions, keeping in mind that the ultimate objective is to save as much of the group as possible, its goodwill, and its client relations. 

 

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Related Publications:

Focus 13: Challenges in Group Governance: The Governance of Cross-Border Bank Subsidiaries

Focus 11: Guidance for the Directors of Banks