Sweden Wants Bail-In Model to Target Senior Bank Creditors
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Sweden’s financial regulator wants to copy a bail-in model first tested in neighboring Denmark to ensure that senior bondholders share losses in insolvencies.
The Stockholm-based Financial Supervisory Authority wants bank insolvency rules in Sweden and the rest of Europe to discourage risk-taking by driving home the message that creditors will no longer be bailed out by taxpayers, said Martin Andersson, the regulator’s director-general.