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 prop

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: