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Clifford Chance

Clifford Chance


Germany plans to subordinate senior unsecured bonds in bank insolvency

24 March 2015

The German Federal Government has published a draft law implementing the Single Resolution Mechanism. It includes a proposal to subordinate senior debt instruments in the insolvency of German banks. The subordination is designed to enable the bail-in of senior debt instruments before other unsecured claims and to help German banks meet the loss absorbency requirements of new European bank resolution frameworks.

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