Basel bids to make bondholders pay price of failure
The Basel Committee on Banking Supervision has outlined a proposal to ensure bondholders would no longer be able to avoid taking the hit for bank bailouts.
In a consultation document out Thursday, the committee said that it would bar instruments being eligible as either tier one or tier two capital unless they could be written off, or converted into common shares, "in the event that a bank is unable to support itself in the private market in the absence of such conversions."
The committee's
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