FT: Brussels to target bondholders on bail-outs
10 January 2011
The FT reports that Michel Barnier is proposing a bail-in regime for banks, but makes the point that any such changes involve enormous and complex changes to national legislation on bankruptcy and shareholder rights.
The article quoted one commentator saying that in this case, the EU end of the legislation will be straight-forward, while the national end will be a lot more complex. Mr Barnier is also considering the possibility of living wills. The plans, however, did not touch on the question of Cocos, contingent capital bonds – bond that are automatically converted to equity on at a pre-determined trigger level.
© Financial Times
