EU Wants Reassurance US Won’t Block AT1 Wipe-Outs If Banks Fail

Europe’s top official for winding down failed lenders is seeking reassurances that the US won’t stand in the way of regulators elsewhere forcing bondholders to take losses when big banks fail.

Dominique Laboureix said he has recently convened a group at the Financial Stability Board that is “working seriously” on the matter.

“In these topics, you cannot achieve 100% of comfort all around the globe with all the authorities,” Laboureix, who leads Europe’s Single Resolution Board, said in an interview. “You need to accept a certain variable of risk.”

Dominique Laboureix

Photographer: Nicolas Lobet/SRB

Two and a half years after the financial system ...