Recent Developments

Recent Developments

Recent Developments

Global—On 26 October 2012, the U.S. Court of Appeals for the Second Circuit, in a ruling that may impact sovereign debt restructurings, upheld a lower court order enjoining Argentina from making payments on restructured defaulted debt without making comparable payments to bondholders who did not participate in the restructuring.

Recent Developments

Recent Developments

The Committee on Payment and Settlement Systems within Basel has published a report looking at how clearing and settlement arrangements for repos work and have worked during the economic crisis. It looks at issues that may affect resilience of repo markets and suggests ideas for strengthening them.

Treasury is consulting on implementation of the changes to the Settlement Finality Directive (SFD) and the Financial Collateral Directive (FCD) in the UK. The changes to the Directives cover:

Treasury has announced the next stage of withdrawal of government support for Northern Rock. It will end its guarantee on wholesale liabilities in three months' time, earlier than planned.

Parliament made a resolution calling on the Commission to adopt draft laws before the end of the year to help manage cross-border institutional crises. The measures should provide a common minimum set of rules, encourage convergence of national resolution and insolvency laws, and ultimately establish an EU resolution and insolvency regime. Parliament wants to see more crisis management powers to supervisory authorities, probably coordinated by the new European Banking Authority (EBA) (which takes over from CEBS).