Make All Existing Debt “Bail-inable” Say Banks
This is a link to an FT article reporting on evidence given yesterday to the Parliamentary Commission on Banking Standards by Stephen Hester, Chief Executive of Royal Bank of Scotland and Peter Sands, his opposite number at Standard Chartered.
Both men support proposals to make all existing unsecured bank debt “bail-inable”, irrespective of maturity. This, the FT reports, would create a buffer of more than £200 billion before bank failure would result in taxpayer liability. Mr Hester is reported to have recognised that such a move was “essential for society”, even if it led to increases in the cost of bank debt.Contact Us