“CoCos in Europe: What Is Wrong – and How to Fix It?” by Edoardo D. Martino (University of Amsterdam – University of Amsterdam Faculty of Law; European Banking Institute) Casimiro Antonio Nigro (University of Leeds School of Law; Center for Financial Studies (CFS); Luiss Guido Carli University – Department of Law), and Tom Vos (University of Antwerp) was jointly published on 29 April 2024 in the EBI Working Paper Series No. 169.

This authors of this paper highlight the main frictions between Bank Resolution and general Insolvency Law, which are rooted in the different objectives of each legal framework and the different interests that they aim to protect. Paradoxically, despite these frictions, resolution authorities in the EU must apply the national Insolvency Law, which is still not harmonized at European level. And they must do so not only in the event of resolution but also in ex-post and ex-ante situations, with respect to key issues that are either incompletely or too broadly regulated under the BRRD (grounds for resolution, creditors’ protection and creditor hierarchy). In the absence of specific rules, this article aims to shed light on the main interpretative tensions between the rules that are applicable in resolution and the corresponding rules of insolvency.

To read the entire paper: https://ssrn.com/abstract=4810761 or http://dx.doi.org/10.2139/ssrn.4810761