(Jul 6) -- The Financial Stability Board has issued guidance to help global systemically important banks' prepare for a possible collapse and deal with failure "in an orderly manner." The rules would prevent conflict between international banks' home regulators and authorities in their host countries. And i
nvestors, rather than taxpayers, would foot the bill.
"This should diminish any incentives on the part of host authorities to ring-fence assets domestically," the FSB said. "Host authorities must have confidence that there is sufficient loss-absorbing and recapitalization capacity available to subsidiaries in their jurisdictions with legal certainty at the point of entry into resolution."