International Coordination in Cross-Border Bank Bail-ins: Problems and Prospects

Bail-in is quickly becoming a predominant approach to banking resolution. The EU Bank Recovery Resolution Directive and the US Federal Deposit Insurance Corporation’s single point of entry strategy envisage creditors’ recapitalisations
to resolve a failing financial institution. However, this legislation focuses on the domestic aspects of bail-in, leaving the question of how it is applied
to a cross-border banking group open. Cross-border banking resolution has been historically subject to coordination failures, which have resulted in disorderly resolutions with dangerous systemic effects. The goal of this article is to assess whether bail-in is subject to the same coordination problems that affect other resolution tools, and to discuss the logic of international legal cooperation in bail-in policies. We demonstrate that, in spite of the evident benefit in terms of fiscal sustainability, bail-in suffers from complex coordination problems which, if not addressed, might lead to regulatory arbitrage and lengthy court battles, and, ultimately, may disrupt resolutions. We argue that only a binding legal regime can address those problems. In doing so, we discuss the recent Financial Stability
Board’s proposal on cross-border recognition of resolution action, and the role of international law in promoting cooperation in banking resolution.

Much Ado About Nothing: The Limitation of Liability and the Market for 19th century Irish Bank Stock

Abstract Limited liability is widely believed to be a prerequisite for the emergence of an active and liquid securities market because the transactions costs associated with trading ownership of unlimited liability firms are viewed as prohibitive. In this article, we examine the trading of shares in an Irish bank, which limited its liability in 1883. Using this bank’s archives, we assemble a time series of trading data, which we test for structural breaks. Our results suggest that the move to limited liability had a negligible impact upon the trading of this bank’s shares.

The Trading of Unlimited Liability Bank Shares in Nineteenth Century Ireland: The Bagehot Hypothesis

In the mid-1820s, banks became the first businesses in Great Britain and Ireland to be allowed to form freely on an unlimited liability joint-stock basis. Walter Bagehot warned that their shares would ultimately be owned by widows, orphans, and other impecunious individuals. Another hypothesis is that the governing bodies of these banks, constrained by special legal restrictions on share trading, acted effectively to prevent such shares being transferred to the less wealthy. We test both conjectures using the archives of an Irish joint-stock bank. The results do not support Bagehot's hypothesis.

High-resolution Keck I spectroscopy of Galactic halo post-asymptotic giant branch stars

Absolute and differential abundance analyses have been performed from high-resolution, high signal-to-noise ratio optical (Keck I) spectra for three evolved Galactic halo stars, namely PG 1704 + 222, HD 341617 and LSIV -0401. Their derived atmospheric parameters indicate that all three objects are undergoing a post-asymptotic giant branch (post-AGB) phase of evolution. A differential abundance analysis reveals HD 341617 as having a mild carbon deficiency of 0.74 dex, possibly due to the star having evolved off the AGB before the onset of the third dredge-up. Although such carbon underabundances are typical of hot post-AGB objects, the same trend is not observed in PG 1704 + 222, where the carbon abundance is found to be consistent with those derived for nitrogen and oxygen. Hence, a dredge-up scenario need not be invoked to explain the chemical composition of PG 1704 + 222. For LSIV -0401 no iron deficiency is apparent relative to magnesium and silicon, and hence a gas- dust separation event in the AGB progenitor need not be invoked for this star.

High-resolution spectroscopic observations of B-type stars from the Edinburgh-Cape Survey - III. Completion of a magnitude range limited survey

High spectral resolution (R similar to 40 000) and signal-to- noise ratio observations of five high Galactic latitude early- type stars taken from the Edinburgh-Cape (EC) Faint Blue Object Survey are presented. These were required to complete a magnitude range-limited survey of young B-type objects with 11 <V <15. Of the five stars, four were rejected on the grounds that they are either subluminous (subdwarf or horizontal branch), were part of a binary system or possessed colours later than the (U - B) = -0.5 cut-off employed. The remaining star in the data set, EC 19596-5356, is found to exhibit normal young B-type stellar properties. A kinematic analysis reveals that an origin in the Galactic disc appears likely for all the stars in the sample. Some statistics are drawn about the number density of young stars in the Galactic halo.

High-resolution spectroscopic observations of post-asymptotic giant branch candidates from the Edinburgh-Cape Survey

High spectral resolution ( R similar to 40 000) and signal-to-noise optical spectra, obtained at the Very Large Telescope ( VLT), are presented for three post-asymptotic giant branch ( AGB) candidates selected from the Edinburgh-Cape ( EC) Faint Blue Object Survey. The stellar atmospheric parameters and chemical compositions, derived using sophisticated non-local thermodynamic equilibrium calculations, reveal that EC 14102-1337 and EC 20068-7324 are both in an evolved post-horizontal branch ( HB) evolutionary state. However, EC 11507-2253 is most likely a post-AGB star.

High-resolution spectroscopy of globular cluster post-Asymptotic Giant Branch stars

We present model atmosphere analyses of high resolution Keck and VLT optical spectra for three evolved stars in globular clusters, viz. ZNG-1 in M 10, ZNG-1 in M 15 and ZNG-1 in NGC 6712. The derived atmospheric parameters and chemical compositions confirm the programme stars to be in the post- Asymptotic Giant Branch (post-AGB) evolutionary phase. Differential abundance analyses reveal CNO abundance patterns in M 10 ZNG-1, and possibly M 15 ZNG-1, which Suggest that both objects may have evolved off the AGB before the third dredge-up occurred. The abundance pattern of these stars is similar to the third class of optically, bright post-AGB objects discussed by van Winckel (1997). Furthermore, M 10 ZNG-1 exhibits a large C underabundance (with Delta[C/O] similar to -1.6 dex), typical of other hot post-AGB objects. Differential Delta[alpha/Fe] abundance ratios in both M 10 ZNG-1 and NGC 6712 ZNG-1 are found to be approximately 0.0 dex, with the Fe abundance of the former being in disagreement with the cluster metallicity of M 10. Given that the Fe absorption features in both M 10 ZNG-1 and NGC6712 ZNG-1 are well observed and reliably modelled, we believe that these differential Fe abundance estimates to be secure. However, our Fe abundance is difficult to explain in terms of previous evolutionary processes that Occur oil both the Horizontal Branch and the AGB.