# kaal:claim:2061166-019

**Claim.** The German reorganization fund's maximum volume of 70 billion euros may not suffice in a financial crisis, and the availability of those funds and the time needed to raise them are an even greater concern than the ceiling itself.

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

**Holds when.**

- German reorganization fund under the Restructuring Fund Law

**Source quote.**

> Another point of contention is the size of the fund with a maximum volume of 70 billion euros.447 It is questionable if this amount will suffice during a financial crisis. The availability of these funds and the time it will take to raise them is of even greater concern.

**From.** Christoph K. Henkel, Wulf A. Kaal, *Contingent Capital in European Union Bank Restructuring* (2012), (c) The Law Establishing the Reorganization Fund for Financial Institutions, page 51

**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.** Undersized and slow-to-mobilize resolution fund  (family: supervisory-capacity-gap)

**Topics.** systemic-risk

**Keywords.** reorganization-fund, resolution-financing, german-banking-law, crisis-capacity

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