Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

10 December 2012

GFMA comment on G-SIFI Resolution paper from US FDIC and Bank of England


Default: Change to:


The Global Financial Markets Association provided comments on the cross-border resolution plans published by the US Federal Deposit Insurance Corporation (FDIC) and Bank of England.


Simon Lewis, chief executive of the Global Financial Markets Association (GFMA) said:

GFMA strongly supports the joint paper published today by the Bank of England and the FDIC on resolving US or UK-based G-SIFIs. No financial services firm should be ‘too-big-to-fail’ or have to rely on taxpayer support for its survival.

GFMA notes that there can be significant benefits in a whole group, single point of entry, approach where this is effective. However, as acknowledged in the paper, it is important to recognise that a single point of entry strategy may not be appropriate for all institutions - for example, where there is insufficient capital at the holding company level to absorb the required level of losses.

“Resolution strategies therefore need to be tailored to the circumstances of each institution and the development of firm-specific cross-border cooperation agreements will be a key component to achieve this. We urge similar cooperation between authorities in other jurisdictions, building upon the framework established by the Financial Stability Board.”

Press release



© GFMA


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment