Banks Must Lay Out Resolution Triggers, Regulators Say

Law360, New York (July 16, 2013, 6:46 PM EDT) -- A global regulatory panel on Tuesday told the world's largest banks that they must clearly lay out what events would trigger them to raise capital and take other measures to avoid a taxpayer bailout as part of required resolution plans.

The Financial Stability Board, which coordinates global regulatory efforts, said that the while the triggers listed in the resolution plans do not have to automatically set off resolution actions like raising capital or selling off assets, they should force banks and regulators to look seriously toward...
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