
Buy side may need ‘persuasion’ to give up termination rights
Bafin's König says early terminations could make bank resolution impossible

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
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