Liikanen at odds with UK and Europe over bail-in
Erkki Liikanen, the Finnish central bank governor whose recent report on banking reform reignited the debate around senior bail-in, this week clashed with UK members of parliament and DCM bankers when he suggested that existing senior debt should be protected from losses (or "grandfathered") when bail-in comes into force in 2018.
Appearing in front of the UK parliamentary commission for banking standards, which is conducting pre-legislative scrutiny of the countrys banking reform bill, Liikanen was asked whether it was realistic to expect investors to buy bail-inable debt.
In reply, he said he agreed that banking should be like other industries
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