Germany’s federal government has implemented measures for the financial industry on the basis of the Financial Markets Stabilisation Act. For long-term stabilisation, it has introduced measures that place emphasis on the restructuring and reorganisation of endangered Germany-based financial institutions.
In “Financial Stabilisation Measures for Endangered Germany-Based Credit Institutions,” published in the September 2010 edition of the Inter-Pacific Bar Association’s IPBA Journal, Squire Sanders European partner Dr. Andreas Fillmann discusses important elements of a government draft of the Act for the Restructuring and Orderly Liquidation of Credit Institutions for the Establishment of a Restructuring Fund for Credit Institutions and for the Extension of the Limitation Period of Corporate Law Management Liability, published in August. Dr. Fillmann discusses new pre-insolvency measures designed to prevent insolvency of endangered banks, such as the introduction of a restructuring fund and new obligations for troubled institutions to transfer assets to another bank.
This article was reprinted with permission from the Inter-Pacific Bar Association.