Sweden’s financial regulator plans to emulate Denmark’s bail-in model to ensure that senior bank investors share losses in insolvencies.
“Swedish banks don’t seem happy with the attempts of the Finansinspektionen (FSA) to make senior bondholders share some of the losses,” said Mikael Stahl, a partner at Vinge.
Dan Hanqvist, also a partner at the Swedish law firm, agreed with Stahl about the model, which was announced on May 16. “There is a concern that if we go further than anyone else then costs will rise.”
“Saddling Swedish institutions with far higher costs than others will create a distortion of competition, at least...