The Law Society has submitted a letter in support of the City of London Law Society's response to the ‘Working Document of the European Commission on bail-in as a debt write down tool’.
The letter reiterates the Law Society’s view that bail-in has a number of drawbacks as a tool for increasing the loss absorbing capacity of banks and raises a number of concerns with regards to its consistency with important legal principles such as certainty of contract. Within that context the letter supports the position of the CLLS with regards to when and under what conditions bail-in may be acceptable and play some role in increasing the ability of banks to absorb losses.