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Citizens have not been pleased with being saddled with the burden of bailing out failed banks (Photo: William Murphy)

Brussels wants bondholders to help pay for bank failures

The public would be spared from further pain in bailing out banks in the future, with bondholders instead footing more of the bill under plans unveiled on Thursday (6 January) by the European Commission to give EU national regulators more powers to intervene ahead of any crisis.

The EU executive outlined a series of ideas up for discussion that suggest bondholders should be forced to accept a 'haircut' on their investments in a troubled bank or convert their bonds into equity.

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Citizens have not been pleased with being saddled with the burden of bailing out failed banks (Photo: William Murphy)

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