Professor Haentjens on 'shadow banking' in bank resolution: balancing public policy and party autonomy
Contract means contract? Step-in risk, safeguards and resolution
On 28 October, Professor Matthias Haentjens spoke at the Annual Global Conference of the European Banking Institute (EBI). The conference was organized in cooperation with, and at the premises of the Deutsche Bundesbank in Frankfurt. His speech was entitled “Contract means contract? Step-in risk, safeguards and resolution” and it concerned, specifically, the treatment of shadow banking in bank resolution. Professor Haentjens showed how various recent legislative instruments such as the BRRD and (amendments to) the CRR curbed party autonomy where it regards securitisations. For all these instruments, legislators have invoked considerations of public policy (mainly: financial stability) as justification for curbing party autonomy. Professor Haentjens presented a normative framework on how to balance these public policy considerations against party autonomy, a main principle of private law.
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