Financial Services Secretary Paul Myners today published a report setting out the Government's initial thinking on reforms to strengthen the UK's ability to deal with the failure of an investment bank.
Like other financial centres, London was affected by the collapse of Lehman Brothers in September 2008 and the events that followed. The Government is committed to implementing reforms that will enable an easier resolution of a failing investment bank should any such event happen again.
The report outlines the Government's thinking on the changes to market practice, regulation, and insolvency law that might be needed to deal with any future failue of a major investment bank.
The report considers the treatment of investment banking clients after default, the future of their assets, and the treatment of their open or unreconciled trading positions. It also examines what can be done to make the process of insolvency more effective, and to limit the damage that may be done by a failing investment bank.
Comments