Bailin and Fraud: Difference between pages

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1.    
''Law.''


A technique used as part of the resolution of a failed bank under statutory authority.  
A criminally false representation by means of a statement or conduct made knowingly or recklessly in order to gain a material advantage, usually, but not necessarily, a financial advantage.  


The Resolution Authority (RA) makes an assessment of the extent of expected losses and reconstructs the bank's capital accordingly.
Financial frauds usually involve concealment as well as false representations.


In reconstructing the bank's capital the RA imposes losses on creditors, including preferred shareholders and depositors. 


The allocation of the total expected losses follows the creditor hierarchy that would apply in a liquidation, until the total expected losses are covered.
== See also ==
 
*[[Advanced Persistent Threat]]
* [[APP fraud]]
The remaining (surviving) layers of debt are partially converted to equity to recapitalise viable parts of the business.
* [[CEO fraud]]
 
* [[Cifas]]
The viable parts of the business are thus enabled to continue under new ownership.
* [[Dedicated Card and Payment Crime Unit]]
 
* [[Extrinsic evidence]]
 
*[[False accounting]]
The RA is normally given significant discretion in how the reconstruction - including bailin - is applied.
* [[Forgery]]
 
* [[Fraud Advisory Panel]]
 
* [[Fraud on the minority]]
2.   
* [[Fraudulent trading]]
* [[Money mule]]
* [[Pensioner existence fraud]]
* [[Ponzi scheme]]
* [[Segregation of duties]]
* [[Misrepresentation]]
* [[Serious Fraud Office ]]
* [[Software robot]]
* [[Wire fraud]]


Contractual bailin refers to a provision in the terms of certain bank debt that are to be converted automatically to equity or written off, if conditions specified in the contract obtain.


==Other links==
[http://www.treasurers.org/node/9465 UK businesses fined over £166m for misconduct, Sally Percy, Oct 2013]


== See also ==
[[Category:Accounting,_tax_and_regulation]]
* [[Resolution Authority]]
[[Category:Compliance_and_audit]]
* [[Multiple Point of Entry]]
[[Category:Financial_risk_management]]
[[Category:Risk_frameworks]]

Revision as of 09:36, 3 March 2022

Law.

A criminally false representation by means of a statement or conduct made knowingly or recklessly in order to gain a material advantage, usually, but not necessarily, a financial advantage.

Financial frauds usually involve concealment as well as false representations.


See also


Other links

UK businesses fined over £166m for misconduct, Sally Percy, Oct 2013

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