SEC Mulls Rule Exempting Foreign Bank Rescue Moves From US Law

Securities issued to investors as part of a foreign banking regulator’s efforts to stabilize an at-risk lender could be exempt from US law under a proposal floated by SEC Chairman Paul Atkins, as the agency issued a specific carve-out for the Bank of England and its “bail-in” powers adopted after the 2008 financial crisis.

The Securities and Exchange Commission on Friday promptly granted a request assuring the Bank of England that the US regulator wouldn’t pursue an enforcement action over unregistered securities if a lender acting at the direction of the UK central bank exchanges bail-in securities—instruments that can be ...