Buy side may need ‘persuasion’ to give up termination rights

Bafin's König says early terminations could make bank resolution impossible

A photo of bafin president elke koenig
Elke König, Bafin

Termination rights currently enjoyed by derivatives counterparties could make it impossible for resolution authorities to effectively resolve a big, failed bank – a barrier that must be torn down, according to Elke König, president of Germany's prudential regulator, the Bundesanstalt für Finanzdienstleistungsaufsicht (Bafin).

"If, as a resolution authority, you look at an organisation and have a beautiful plan for resolution, you have to consider that whatever action you take will immediately tr

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