Yet more questions to be answered on bail-in as national regulators win discretion

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Yet more questions to be answered on bail-in as national regulators win discretion

Europe

European leaders finally reached an agreement on bail-in rules on Thursday, laying the groundwork for how regulators will force losses upon the shareholders and creditors of failed or failing banks. But the accord gives national regulators a large amount of discretion in how to apply these losses, which market participants say makes it difficult to quantify the risks of senior unsecured bank paper.

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