Committee (1st Day)

Part of the debate – in the House of Lords at 6:00 pm on 13th January 2009.

Alert me about debates like this

Photo of Lord Myners Lord Myners Parliamentary Secretary, HM Treasury 6:00 pm, 13th January 2009

Bondholders, where they exist, will be treated according to their ranking in the liability structure of the company. If a surplus is available at the end of the resolution process, it will be distributed in accordance with the claims, and that will reflect the seniority, or otherwise, of different classes of bondholder. One consequence that I can see arising as a result of the banking crisis is that banks will move to much simpler capital structures and will make much less use of innovative instruments than has been the case in the past. Therefore, should we ever have to face a similar situation in the envisageable future, some of the problems may not be quite so onerous.