Creating Swaps Stay, Takeda, Austria Verdict: Compliance
This article is for subscribers only.
Firms holding swaps contracts with a bank filing for U.S. bankruptcy protection would have to wait at least 24 hours before demanding collateral under new practices that might be adopted by the industry this month.
The revision may make it easier for banks to satisfy government requirements for the “living wills” they must produce to show how they’d unwind their businesses in an orderly fashion if they veered toward collapse.