Banks' Creditors To Take The Hit

Mark Carney, the Governor of the Bank of England, wants creditors to be bare banks' losses (rather than the taxpayer).

He is quoted by the Telegraph:

"Once implemented, these agreements will play important roles in enabling globally systemic banks to be resolved without recourse to public subsidy and without disruption to the wider financial system."

The proposals are set to be agreed on by the G20 next year, and must be implement by banks by 2019.

This is all very well and dandy. However, it will mean higher costs for the customers of the banks; as the creditors will expect a greater return for the risks that they bare.