End of ‘Too-Big-to-Fail’ Banking Era Endorsed by World Leaders Bloomberg

Discussion in 'Politics' started by Rotties4Ever, Nov 16, 2015.

  1. http://www.bloomberg.com/news/articles/2015-11-15/...




    <blockquote class='ipsBlockquote' >
    World leaders are set to endorse plans by regulators to end the era of
    too-big-to-fail banks, forcing them to raise as much as $1.2 trillion,
    and backed proposals to wrap up sweeping reforms of rules for the global
    banking system


    The Financial Stability Board,
    created by the Group of 20 nations after the 2008 credit crunch, last
    week put forward a plan on how the world's biggest banks can collapse
    without taxpayer bailouts. The proposals, which force bond investors to
    take losses if banks fail, are due to come into effect in two steps
    starting in 2019. G-20 leaders signed off on them, according to a draft
    communique from the summit in Antalya, Turkey.

    The rules for “total loss absorbing capacity” complete the reconfiguration
    at banks designed to fix the failures and fill in the holes exposed by
    the crisis. It comes on top of measures that have forced banks to hold
    many times the amount of equity they had in the run-up to 2008. The FSB
    has also ordered lenders to issue bonds that can stop paying coupons and
    can be written off or converted into shares to preserve capital.
    </blockquote>


    Excuse my optimism, but what are the chance of this actually happening? I guess the fact that its even being discussed is a bonus. Hopefully its a matter of time.




     
  2. I doubt that things will hold until 2019.



     

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