The G20 agreed to shift from 'bail-out' models (where governments absorb bank failure costs) to 'bail-in' models (where bondholders, depositors above the insurance limit, and creditors absorb losses), which increases systemic fragility because bondholders will immediately flee any troubled bank.
causalpending
Speaker
Alistair MacleodEvidence Quote
“if you're going to do that then you you're actually making the systemic risk problem even greater because the moment you get a problem what happens to all the bank bonds the bondholders just get out of every bank bond”
Created: 8/11/2026, 1:15:22 AM
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