bail-in
Internal bank rescue
A bail-in is a rescue of a failing financial institution using funds from its own creditors, bondholders, or depositors rather than external sources like government bailouts.
During a bail-in, these stakeholders may see their holdings converted to equity or reduced in value to absorb losses: Regulators ordered a bail-in to prevent the bank's collapse.
The term emerged after the 2008 financial crisis as an alternative to taxpayer-funded rescues.
Restructuring corporate capital composition
- restructuringRearranging an existing framework
- insolvencyInability to pay debts
- bankruptcyLegal status when insolvent
- creditorsThose owed payment
depositors · haircut · losses · writedown · conversion · debt-to-equity · subordinated · bondholders
Disease spread by contact
- stabilityResistance to displacement
- resilienceCapacity to recover quickly
- interconnectedJoined in multiple ways
- spilloverExcess that escapes
domino · cascading · safeguard · firewall · buffer · backstop · prudential · oversight
Financial regulation legislation
- BaselSwiss Rhine city
- FDICFederal deposit guarantor
- contractualRelating to formal agreements
- statutoryEstablished by enacted law
recapitalization
Restructuring corporate capital composition
- restructuringRearranging an existing framework
- insolvencyInability to pay debts
- bankruptcyLegal status when insolvent
creditors · depositors · haircut · losses · writedown · conversion · debt-to-equity · subordinated · bondholders · recovery
contagion
Disease spread by contact
- stabilityResistance to displacement
- resilienceCapacity to recover quickly
- interconnectedJoined in multiple ways
spillover · domino · cascading · safeguard · firewall · buffer · backstop · prudential · oversight · supervision
Dodd-Frank
Financial regulation legislation
- BaselSwiss Rhine city
- FDICFederal deposit guarantor
- contractualRelating to formal agreements
- Bank Failuresbank failure, bank closure, bank run, insolvency, receivership
- banking regulationFDIC, banking oversight, bank audit, bank examiners, bank examiner
- Bailoutsbank bailouts, rescue package, rescue fund, auto bailouts, TARP
- European BankingEuropean Central Bank, eurozone, euro, Deutsche Bank, HSBC
bail-inbailout
Emergency aid preventing bankruptcy
state intervention · government intervention · nationalization · TARP
bail-inliquidation
Selling assets for cash
bankruptcy · dissolution · receivership · winding up · collapse