Regulators trying to end the problem of "too big to fail" banks are moving closer to a landmark deal that will give large banks more flexibility about how to deal with losses when they go bust and cut the amount of fresh bonds they will need to issue. Global regulators, led by Bank of England governor Mark Carney, want to agree a set of rules that would force bondholders to cover the losses that arise when a major bank fails, to avoid a repeat of the last financial crisis when taxpayers were forced to foot the bill. Different banking models and legal systems have complicated the talks and in order to try and secure a deal by the next meeting of the Group of 20 leading economies in Brisbane in November, regulators have agreed a more flexible approach, according to two sources familiar with the draft proposals. Under the new plan, major banks including HSBC, Industrial and Commercial Bank of China, Mitsubishi UFJ and Citigroup, will be able to count their surplus capital, including
↧