The Government will come under pressure today to rewrite its controversial plans for dealing with ailing British banks as some of the City's most powerful fund managers claim that the new rules would ride roughshod over their rights, The Times reports.
Investors' opposition to plans to create a special resolution regime (SRR) for lenders on the brink of collapse comes after banks and lawyers expressed their hostility. Banks say that the proposals would bump up their cost of capital and law firms say they create huge legal uncertainty. Fund managers are calling the rules ill-conceived and argue that they would make it possible for the authorities to break up or sell on parts of a stricken bank without having to consult equity or bondholders. STANLEY FINK, ONE of the leading figures in the hedge fund world, said he is looking forward to...
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