# kaal:claim:2061166-011

**Claim.** Before the 2010 reform, the German regulatory intervention regime for financial institutions contained no procedure that would have reliably permitted a bank to be operated as a going concern during the financial crisis.

**Type.** failure  **Support.** argued

**Holds when.**

- German law prior to the Financial Institution Reorganization Act entering into force on January 1, 2011

**Source quote.**

> In addition, the German regulatory intervention regime for financial institutions did not allow for any procedure that would have reliably permitted operating a bank as a going concern during the financial crisis.

**From.** Christoph K. Henkel, Wulf A. Kaal, *Contingent Capital in European Union Bank Restructuring* (2012), (a) The German Financial Institution Reorganization Act, page 34

**Cite as.** Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012). SSRN: https://ssrn.com/abstract=2061166

**Verify.** sha256 of source PDF `43625ea260d0fc045e86d3435df50c9d0ca4abf8542e6085a6165be6653b4a7b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Henkel%20and%20Kaal%20-%202012%20-%20Contingent%20Capital%20in%20European%20Union%20Bank%20Restructuring.pdf

**Failure mode.** No going-concern reorganization path for German banks  (family: supervisory-capacity-gap)

**Topics.** systemic-risk

**Keywords.** german-banking-law, going-concern, insolvency-law, bank-reorganization

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