ABSTRACT
This chapter examines some of the differences in the approaches taken in the United States(US), United Kingdom(UK) and European Union(EU) member states and the possible implications for the industry and the financial system. The chapter describes the way US and UK resolution powers could be used to execute the preferred approach of an single point of entry(SPOE) resolution. The bank of England (BoE) provided further insights into its approach to using the SPOE strategy. The total loss absorbing capacity (TLAC) framework was developed in the context of an SPOE strategy designed to maintain systemically important operations in subsidiaries. The chapter focuses on the essential restructuring and recapitalisation of the failing systemically important financial institutions(SIFI) that the Federal Deposit Insurance Corporation(FDIC), plan to accomplish through a bail-in of pre existing debt holders. Orderly liquidation authority(OLA) is designed exclusively to address the failure of SIFIs in cases where such an insolvency would have serious adverse effects on the US economy.
