On Tuesday 6 June, the national ambassadors to the EU (Coreper) were close to a political agreement in principle on the legislative proposal modifying the 'BRRD' directive governing bank resolution, through the creation of a new asset class made up of non-preferred senior debt (see EUROPE 11674).
This debt would only be used for the purposes of a bail-in of a defaulting bank after other own funds instruments have been put to use, but before the other senior debt.
At the Coreper meeting, the...