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The Dodd-Frank Wall Street Reform Act's Turn to International Law
Macey, Jonathan Barr, Michael
Macey, Jonathan
Barr, Michael
Abstract
The development of a harmonized system for resolving the failures of large, international financial institutions is considered by academics and policy-makers to be critical to reducing systemic risk and reducing the probability that the insolvency of a major bank will lead to a global economic collapse. Reaching agreement on how to develop this harmonized system for financial institutions with significant transnational assets and liabilities has proved elusive thus far. Commentators in favor of a more international and less parochial approach to resolving bank failures can point to a number of extremely high-profile events that demonstrate the manifest unfairness of resolving bank failures on an individual basis. The bankruptcies of Lehman Brothers and the Bank of Credit and Commerce International (BCCI) are two of many such examples.