Trichet brings SDRM down to earth

The IMF's much-vaunted Sovereign Debt Restructuring Mechanism is the latest casualty in a string of apparently wasted efforts in attempting to find some way to save the world from the terrors of sovereign default. But a few months ago Banque de France governor Jean-Claude Trichet came up with a more practical solution. The Banque de France proposed a "Code of Good Conduct" for sovereign debt restructuring, which avoids making pie-in-the-sky assumptions that blanket laws across the world would