On August 1, 2016, the Association for Financial Markets in Europe (AFME) published model clauses for the contractual recognition of bail-in for the purpose of satisfying the requirements of Article 55 of the EU Bank Recovery and Resolution Directive (BRRD).

Background:

Last week, the Associated Press announced that the number of bankruptcy filings in federal courts this year have increased by more than one-third. Based on numbers from the Administrative Office of the U.S. Courts, the Associated Press reports that about 1.4 million bankruptcy cases were filed between October 1, 2008 and September 30, 2009. In comparison, 1 million cases were filed during this same period last year. While Chapters 7, 12 and 13 filings have all increased, of particular note, Chapter 11 filings increased by 68 percent.