Symposium on International Investment Law & Contemporary Crises – Part 2 of 8
Crises as Investor-State Dispute Catalysts - The Banking & Finance Sector

Do financial crises drive investor-State arbitration?

In this afternoon’s symposium contribution, David Attanasio (Partner, Womble Bond Dickinson (US) LLP) examines empirical findings from the BIICL study on 145 public ISDS cases in the banking and finance sector - and the results are striking.

The data reveals a clear correlation between major economic crises and the timing of investment disputes, including:

The Argentine Financial Crisis (2001-2002)
The Global Financial Crisis (2007-2009)
The Greek Debt Crisis (2013-2015)

Crisis periods are not just background conditions—they are dispute catalysts.

Key insights from the piece:

- Economic crises significantly influence when disputes arise
- Respondent States often cluster among those most impacted by systemic financial shocks
- Investors succeed less frequently in challenges to emergency intervention measures (bail-ins, bailouts, stabilisation efforts)
- Tribunals tend to defer to bona fide crisis-driven regulatory action—absent bad faith or discrimination

Interestingly, the study finds no discernible COVID-related spike—yet. With a typical lag of two to three years between measure and filing, that story may still be unfolding.

The broader takeaway? ISDS in the financial sector is deeply responsive to macroeconomic instability—and its effectiveness depends heavily on the nature of the State measure being challenged.

Read the full contribution here: https://lnkd.in/eymeHZVr