Danish Bail-In Trauma Consigned to History as EU Mulls Model

Fourteen months after pushing losses on to senior creditors with the failure of Amagerbanken A/S, Denmark is freeing itself of the bail-in stigma that shut most of its banks out of international funding markets.

Legislation passed in October 2010 requiring burden sharing has since been superseded by two bills subsidizing mergers for troubled lenders. Three insolvent banks resorted to the merger package in the last six months, and Denmark hasn’t had a bail-in since the June failure of Fjordbank Mors A/S.