A welcome step

“Throughout this crisis, EU governments put the interests of bank bondholders over those of taxpayers. This has eroded market discipline, imposed unnecessary and unfair burdens on EU taxpayers and shielded bondholders from the consequences of the risks they undertook. The Commissions’ proposals today will help draw a line under this costly policy mistake.”

“The crisis exposed the lack of a fair, predictable and market stabilizing burden sharing regime for both sovereign and bank bondholders. This proposal plugs a part of that gap.”

“A bondholder bail-in regime, properly implemented, can be good for financial stability, taxpayers and even for bondholders themselves if it protects against value destroying bank runs and bankruptcy.”

“Proposals to bail in or haircut bank bondholders can help 1) improve market discipline 2) bring about fairer burden sharing 3) protect taxpayers 4) stabilize the EU financial system.”

Please click below to see an archived webcast of the European Parliament Testimony of Re-Define Managing Director Sony Kapoor on Financial Transaction Taxes. This hearing was conducted by the full ECON committee on the 2nd of December 2009.

Sony Kapoor European Parliament Testimony on Financial Transaction Taxes

For the speech please look at time stamp 16:20:10 to 16:27:20 and for answers to MEP questions please look at time stamp 17:01:20 to 17:09:00.

A copy of the submitted written Testimony of Mr Kapoor will be available both here and on the European Parliament website on Monday the 7th of December. 

Other details of the hearing can be accessed here.