EU To Unveil Bondholder Bail-In Proposals

The European Commission is likely to unveil a set of proposals on Wednesday aimed at relieving the taxpayer from the burden of bailing out failed banks, reports said.

The new proposals would transfer the responsibility of bank bailouts to senior bondholders from taxpayers.

Under the new plan, regulators will be awarded with more powers to impose losses, resulting from a bank failure, on the bondholders. The changes may come into force from 2018.