Regulatory Tussle over Bail-Ins, Depositors Highlights Complexity of Bank Debt

Before the financial crisis began in 2007, banks created and invested in trillions of dollars of complex securities such as collateralized debt obligations. Many of these investments subsequently defaulted or lost the top ratings given to them by ratings companies. With investors suspicious of anything valued or rated using hard-to-fathom models, markets in CDOs and…

Continue reading..