Bankruptcy

Financial Architecture Summit

By Anna Gelpern

The G-20 Summit to Save the World and Reinvent Finance produced a surprisingly meaty declaration and action plan.  At least one specific mention of bankruptcy: 

* National and regional authorities should review resolution regimes and bankruptcy laws in light of recent experience to ensure that they permit an orderly wind-down of large complex cross-border financial institutions. *

In general, the most interesting parts deal with regulatory reform.  Between now and the end of March, we could see interesting work on accounting, credit derivatives, capital, liquidity and regulation of financial conglomerates.  Regulatory harmonization and coordination are getting a massive boost.  The IMF may get a new lease on life.  Unsaid, the G-20 is ascending rapidly as the preeminent international forum for economic policy coordination.  This is especially interesting and important for crisis management, but also for reform going forward.

Full post as published by Credit Slips on November 16, 2008 (boomark / email).