Bail-in burden worsening FIG funding crisis

15 Sep 2011

Uncertainty over how bail-ins of European banks will work in practice is worsening the FIG funding crisis caused by the eurozone meltdown, bankers and investors claimed this week.

The charge flared after the long awaited UK Internal Commission on Banking report on Monday called for the authorities to have a primary bail-in power to haircut creditors holding "the most readily loss-absorbing" liabilities.

The Vickers report defined these as long term senior unsecured debt and argued that ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial