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Banking Bill

Clause 49: Orders Amendment 97 97: Clause 49, page 24, line 26, at end insert— ““(5) The exercise of a third party compensation order will be based on the principle that the Treasury should indemnify counterparties for any loss suffered by them if their netting and close-out arrangements are undermined by the exercise of the stabilisation powers. (6) After a stabilisation power is exercised with respect to a particular bank, counterparties should be allowed to close-out their own hedged and other positions with respect to that bank in order to determine their losses and to make a claim for compensation from the Treasury.””