Bank Resolution and Judicial Review: Lessons of the Banco Popular Litigation Articles uri icon

publication date

  • March 2025

start page

  • 47

end page

  • 66

volume

  • 26

International Standard Serial Number (ISSN)

  • 1566-7529

Electronic International Standard Serial Number (EISSN)

  • 1741-6205

abstract

  • Resolution of a troubled institution and the allocation of losses among creditors can be an efficient way to avoid contagion and minimize taxpayer support, but raises major issues of fairness and equity towards shareholders and creditors, which are a source of tensions. The Banco Popular litigation saga offers clear empirical evidence of these tensions. This essay discusses the main lessons that can be drawn from that litigation.

subjects

  • Business
  • Economics

keywords

  • judicial review; standard of review; bank crises; bank resolution; banco popular