Brexit threatens to reopen Asian bail-in clauses for EU banks
EU27 dealers had used English law contracts for Asian counterparties to comply with BRRD
A fix designed to make it easier for Asian subsidiaries of European Union banks to comply with resolution rules in their home jurisdiction is coming back to haunt dealers, amid the UK’s impending exit from the EU. European banks with a derivatives business in Asia but a bail-in entity based out of their headquarters will be affected, and as a result law firms say they have been inundated with client questions on possible contract renegotiations.
The trouble arises from Article 55 of the EU’s
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