Jan
10
Bank Lenders Dodge Losses Suggesting Loopholes in New Regulation
By-
EU avoids bondholder haircuts in Greece, Italy, Portugal
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SRB’s Koenig says creditors need clear standards to invest
A critical pillar of Europe’s banking union is less than two weeks old, but already plans to make bondholders share the pain when lenders fail are running into old national habits.
Creditors are supposed to take losses when European financial companies collapse under rules that took final effect Jan. 1, but regulators’ actions late last year suggest that may be true more in theory than in practice. Bankers and supervisors in Italy and Greece found ways to shield investors in failing firms; in Portugal, regulators chose who should be impaired; and in Germany, private-sector protection schemes mean bondholders may never suffer imposed losses…
Bank Lenders Dodge Losses Suggesting Loopholes in New Regulation
