Barnier had delayed this key feature of the regulatory overhaul amid the financial panic at the start of the year. His plan now is to iron out the final details of how creditors will bear the costs of recapitalizing banks and to put final proposals to the June G20 meetings of heads of state.
No sooner had Barnier announced his determination to finalize quickly the remaining key questions of the triggers and timing for applying debt write-downs, which debts should be written down and to what extent to ensure restoration of banks’ essential functions, as well as the hierarchy of creditor claims, than the key pillars supporting benign financial conditions in the first quarter began to falter.
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