UK Treasury tables insolvency plans for investment banks
The UK Treasury on Thursday unveiled plans to enable investment banks to fail without endangering systemic risk.
The special administration regime for investment firms will apply for banks not already covered by the UK's special resolution regime, introduced last February.
The arrangements seek to resolve several of the practical difficulties in allowing investment banks to fail, as evinced by the collapse of Lehman Brothers in September 2008.
The proposals acknowledged the existing insolvency
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