LONDON, March 31 Global regulators aim to crack
two of biggest barriers to ending "too big to fail" banks by the
end of this year, Financial Stability Board Chairman Mark Carney
said on Monday.
Regulators are putting in place a complex jigsaw of rules
and mechanisms to wind down failed banks without the massive
market fallout seen when Lehman Brothers went under in 2008.
The FSB is the regulatory arm of the Group of 20 leading
economies (G20) and Carney said progress is expected by December
on requiring the world's top banks to hold capital in case the
The aim is to shield taxpayers who had to shore up lenders
in the 2007-09 financial crisis.
The derivatives industry will also be asked to agree a way
for derivatives contracts to be amended so their closure can be
suspended for a day or two to give regultors time to wind down a
bank that has failed.
"We are looking to put ourselves in a position by Christmas
to have cracked the two biggest issues," Carney told a reporters
after an FSB meeting in London.
(Reporting by Huw Jones and Andy Bruce)