3/4/2014

The Bank of England has suggested that lenders and ISDA reach an agreement that during a crisis, they will temporarily suspend default clauses in some derivatives contracts to prevent banks from collapsing. "The entry of a bank into resolution should not in itself be an event of default which allows counterparties to start accelerating contracts and triggering cross-defaults," said Andrew Gracie, executive director of the central bank's Special Resolution Unit.

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