Bank resolutions: long weekend

Patience is a virtue for anyone looking to challenge decisions made during a bank resolution.

  • By Tyler Davies
  • 25 Apr 2019
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Policymakers have made a lot of the idea that bank resolutions need to happen quickly.

The goal is to pack the work into a “resolution weekend”, allowing an institution to fail on a Friday and find itself rescued by the time markets open again on Monday.

But if this initial process is speedy, the aftermath of a bank resolution is showing itself to be anything but.

Indeed, investors looking to challenge a resolution decision should be prepared to wait a very long time for any sense of conclusion.

Last week, a Dutch court said that it needed further information from experts before it could decide whether creditors were entitled to compensation following the nationalisation of SNS.

It has been more than six years since the Dutch government took the firm public, longer than the time in which SNS had been listed on the Amsterdam stock exchange.

Similarly, investors in Banco Popular, which failed in 2017, are still waiting for courts to determine whether they are right to claim they were made worse off in the resolution than they would have been in an insolvency.

This is not necessarily a bad thing. Judges are clearly taking challenges to bank resolutions very seriously, listening to both sides of the arguments at length.

But market participants need to recognise that the world may have changed dramatically before a firm conclusion is made on any case.

In the fallout of a bank resolution, patience is crucial.

  • By Tyler Davies
  • 25 Apr 2019

Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 UniCredit 8,193.67 66 6.33%
2 HSBC 7,294.00 37 5.64%
3 LBBW 7,113.47 40 5.50%
4 Natixis 5,933.30 28 4.59%
5 Barclays 5,557.78 30 4.30%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 41,680.75 203 6.73%
2 Bank of America Merrill Lynch 40,562.85 159 6.55%
3 JPMorgan 36,060.66 173 5.83%
4 Morgan Stanley 27,211.37 152 4.40%
5 HSBC 26,976.28 152 4.36%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 33,706.12 132 12.03%
2 Citi 32,800.44 157 11.71%
3 JPMorgan 29,132.92 134 10.40%
4 Morgan Stanley 19,896.07 106 7.10%
5 Goldman Sachs 17,708.90 174 6.32%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Natixis 4,918.89 18 7.00%
2 LBBW 4,741.33 18 6.74%
3 Credit Agricole CIB 4,174.25 17 5.94%
4 UniCredit 4,163.16 19 5.92%
5 HSBC 3,974.99 14 5.65%

Global FIG Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Morgan Stanley 365.83 497 7.62%
2 JPMorgan 332.66 618 6.92%
3 Bank of America Merrill Lynch 299.89 590 6.24%
4 Goldman Sachs 276.71 375 5.76%
5 Citi 264.54 592 5.51%

Bookrunners of European Subordinated FIG

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 Credit Agricole CIB 3,549.81 11 11.48%
2 UBS 3,334.58 12 10.78%
3 Barclays 3,229.69 10 10.44%
4 BNP Paribas 2,554.19 12 8.26%
5 HSBC 1,877.94 13 6.07%