The Traderszone Network

Published in TZ Latest News 15 April, 2015 by The TZ Newswire Staff

Regulators eye further changes to end too-big-to-fail banks

Such “stays” on contracts are part of efforts to stop banks from being “too-big-to-fail”, meaning regulators would have enough time to wind them up rather than come under pressure to use taxpayer money to bail them out. The Financial Stability Board (FSB) called for the industry in November last year to develop proposals for briefly suspending the right to terminate repurchase agreement (repo) and securities lending contracts. The contracts are widely used by banks and companies for raising funds.

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