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There are a few problems with this, not least: (a) the quantum of subordinated debt in the small Spanish banks is not significant, and was recently reduced by the trend of liability management exercises; (b) a not insignificant amount of this subordinated was sold to retail investors.
This subordinated debt is now in the sights of euro bail-out enforcers as Spanish banks take up to €100 billion ($123 billion) from rescue funds.In this section Europe's tired engine Liberté, égalité, fermeté?
This is why the subordinated-debt holder is a better disciplinarian than the banks' owners.Given all this, subordinated debt does not sound very attractive.
Similar(57)
This model subordinated social policy to economic goals.
This has subordinated a story of human agency to questions of administrative and price efficiency.
All this is subordinated to "the underlying interests of imperial capital".
In Conn's judgment "this censorship subordinated the requirements of truth-seeking and truth-telling to the hypothetical behavior of an angry mob.
While this would hurt subordinated debt holders, a deferral of interest payments has even broader ramifications.
A body of administrative procedure was built up, but this was always subordinated to the directives of the party leadership.
Under Mao, China had often bullied its neighbours, but had now subordinated this part of its foreign policy because co-operation with America was more important.
This policy appears subordinated to obvious political pressures.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com