kaal:claim:1998455-022

Absent cross holdings, the opposite conflict arises: institutions holding a competitor's converted contingent capital could be tempted to exercise their voting rights against the interests of that competitor.

Source quote, verbatim

Without CCS cross holdings, SIFIs could be tempted to exercise their voting rights against the interests of the competitor if a con- version to equity should have been triggered.

From

Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012), IV.B. Conflicts of Interest, p. 35
https://ssrn.com/abstract=1998455 · source PDF

Cite as

Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012). SSRN: https://ssrn.com/abstract=1998455

Holds when

where a SIFI holds a competitor's CCS without a reciprocal position
after a conversion to equity has been triggered

Classification

failuresupport: arguedfailure: adversarial-competitor-votingfamily: agency-cost-and-managerial-opportunismgovernance-designcontingent-capitalcorporate-governance

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