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Banking Bill

The clause as worded does not mean that directors could not take legal action in pursuit of their contractual rights, but the authorities would rely on the clause to say that, in the particular circumstances of directors of banks, the clause overrode any contractual rights and entitlements that they had. We want to be absolutely clear that we are talking about people who are responsible for failed banks. The failure of a bank is associated with the need to put a bank into a special resolution regime, which should not be taken lightly. That said, a claim to the European Court of Human Rights for compensation may exist if a European Court of Human Rights right has been interfered with, but, other than that, the clause specifies quite clearly that the authorities have the power seriously to amend and revise contracts.