Bank of England Governor and chairman of the Financial Stability Board Mark Carney addresses a news conference at the Bank for International Settlements (BIS) in Basel November 10, 2014.REUTERS/Arnd Wiegmann
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Global regulators Monday proposed new rules to ensure that bank creditors rather than taxpayers pick up the bill when a big lender collapses.These bonds would be converted to equity to help shore up a stricken bank.Most of the banks would need to sell more bonds to comply with the new rules, the FSB said.Analysts at Citi estimated the new rule could cost European banks up to 3 percent of profits in 2016 .Citi said European banks would be required to issue the biggest chunk of new bonds, including BNP Paribas, Deutsche Bank, BBVA and UniCredit, with Swiss and British banks the least affected in Europe.
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