Bank resolutions are never pretty or popular. But it would be particularly painful if the first resolution undertaken by Europe’s Single Resolution Board (SRB) – on Spain’s Banco Popular – turned out to be illegal.
This, at least, is the contention of Popular’s junior bondholders. It means that a great deal more than just money now rides on the valuation used by the SRB in making its resolution decision – the reputation of Europe’s newest regulator is also at stake. And the general treatment of