International Banking and Financial Law Journal: Section 377 of U.K. Financial Services and Markets Act 2000 and Bank "Bail in"

CWT Partner Jennifer Donohue authored an article in the Journal of International Banking and Finance Law regarding Section 377 of the Financial Services and Markets Act 2000 and the topic of bank "bail in" power. Essentially, the article highlights the controversy over "bail in" tools for banks, whereby debt might be written down. However, this tool has been in existence with respect to insurance debt since 1870. Accordingly, the implications for creditors of insurance companies which arise as a result of complex insurance structures may be subject to this power. Furthermore, Donohue states that the absence of jurisprudence over the power's scope seems to render the creditors' status uncertain.

See: Section 377 of the Financial Services and Markets Act 2000 and Bank "Bail in": Insurance wine in bank bottles!This article first appeared in the May 2013 edition of the Butterworths Journal of International Banking and Financial Law.