What is a Bad Bank?

Francesco Dissera

25 years: Securitisation

In this video, Francesco DIssera provides a brief introduction to what bad banks are and discusses a few real world implementations of it.

Capital Markets

In this video, Francesco DIssera provides a brief introduction to what bad banks are and discusses a few real world implementations of it.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

What is a Bad Bank?

2 mins 39 secs

Key learning objectives:

Understand what is a bad bank
Understand how the bad bank Sareb was set up in Spain
Understand the SNB's implementation of the Stabilisation Fund to help UBS

Overview:

A bad bank is a corporate structure which is set-up independently from a bank or financial organisation. It is set-up to separate a banks ‘good’ assets from its bad. The good assets are kept within the parent bank and the bad assets are housed within the bad bank.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Summary

How did the bad bank Sareb work in Spain following the subprime and credit crisis?

Sareb was established in Spain 2012 after the mortgage and credit crisis to acquire NPEs from failing Spanish banks. It’s key shareholders are existing Spanish Banks and some external investors.

How was the Stabilisation Fund used by SNB in Switzerland?

The SNB created the Stabilisation Fund, with the objective of acquiring “toxic” ABS and non-ABS from UBS. Eventually, UBS transferred approximately $38.7bn of these assets at market value to the funds. A dedicated disposal team was created within UBS to dispose of these legacy assets within a predetermined time frame. The Fund was then unwound in 2013 by UBS, achieving a small profit for the Swiss Tax payers.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Francesco Dissera

Francesco is a London-based experienced professional who spent the majority of his career in developing the EMEA ABS market: he has been involved in some of the most innovative transactions, focusing on both traditional and synthetic transactions. He has more than 24 years of investment banking and capital markets experience. Francesco started working at JP Morgan, then spent 14 years at UBS, building the securitisation and covered bond business across EMEA, before going on to lead the EMEA securitisation team at StormHarbour, Santander Continental Europe and Alantra. Francesco has originated and executed more than 80 ABS transactions across EMEA with a focus on FIG, Speciality Finance, Corporate and Government related assets.

There are no available Videos from "Francesco Dissera"