4. A New Resolution Regime in the European Union

In this chapter, a more in depth discussion on the new resolution regime developed and now being implemented in the European Union is presented—a description of how the single resolution regime is working and how it interacts with the resolution fund is also described. Starting from the discussion of the safety net mechanisms, the “bail-in” rule, as opposed to the “bail-out” one is then presented and discussed with few noticeable cases, and considering the potential implications on the overall approach: how it could make the “bankaround” challenge more effective and efficient but also potentially more destabilizing at the level of the fabric of society. Also, the implications of the shareholders, as opposed to the debtholders and to the tax payers are discussed. Finally, the characteristics of the emerging leader of a bankaround is discussed at high level, showing the many winning traits she/he should possess in order to manage successfully all the main phases of the RTX2 approach.