Interim loss-taking proposals threaten tier two costs, say bankers

12 Dec 2012

Stop gap measures for bank capital being hammered out in Brussels this week could push up the price of tier two issuance for banks as soon as next year, capital structuring specialists said.

The European Council, Parliament and Commission — who are striving to reach an agreement on the fourth capital requirements directive and the capital requirements regulation this week — may call for tier two instruments to carry contractual loss absorbency features, bankers say.

Those loss absorbency clauses would kick in ...

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