The Alternative Investment Management Association, American Council of Life Insurers, Association of Institutional INVESTORS, Commodity Markets Council, Customer Commodity Coalition and MFA (collectively, “Trade Associations”) sent a letter to the Financial Stability Board (“FSB”) regarding a proposal to suspend counterparties’ early termination rights during U.S. bankruptcy proceedings.<\/p>\n
In the letter, the Trade Associations expressed concern that using prudential regulations to amend the U.S. Bankruptcy Code will harm the financial system by “compelling customers and investors to waive important rights that protect them during U.S. bankruptcy proceedings.”<\/span><\/p>\n Furthermore, the Trade Associations explained, the FSB “reversed” the normal rulemaking process by conferring with a small group of participants and finalizing the ISDA Protocol before proposing prudential regulations. This reversal, according to the Trade Associations, is “contrary to public policy” and circumvents the legislative process by avoiding the petitioning of the Congress to amend the U.S. Bankruptcy Code.<\/span><\/p>\n See:<\/span> Trade Associations’ Letter<\/a>.<\/span><\/p><\/p>\n","protected":false},"excerpt":{"rendered":" The Alternative Investment Management Association, American Council of Life Insurers, Association of Institutional INVESTORS, Commodity Markets Council, Customer Commodity Coalition and MFA (collectively, “Trade Associations”) sent a letter to the Financial Stability Board (“FSB”) regarding a proposal to suspend counterparties’ … Continue reading