Post-Lehman Rules of the Road: Navigating the Latest Federal Stay Regulations Governing Financial Contracts with Global Systemically Important Banks

Expired

Program Number

30275

Program Date

2020-12-10

CLE Credits

Procedural gaps between the U.S. Bankruptcy Code and federal bank rehabilitation procedures caused one of the destabilizing features of the Lehman Brothers bankruptcy cases, which was the immediate and damaging termination of Lehmans financial contracts and those of its subsidiaries through creditors use of cross-default provisions. A key regulatory reform goal of the Dodd-Frank Wall Street Reform and Consumer Protection Act was to reduce the effect on the United States financial system of the financial failure of a single institution that could have systemic negative impacts on the whole of the U.S. economy, and to preserve the value of that institutions assets. As part of these efforts, recent Federal regulations broadly dictate the timing of use, and types, of default remedies that are permitted in most financial contracts with global systemically important banks (â€œGSIB). This Webinar will help practitioners (a) identify which of their clients are subject to the relevant regulations, (b) understand what types of agreements are covered by the regulations and how to analyze the relevant required new contract language, and (c) develop an appropriate and cost-efficient strategy for their clients to comply with the regulations.