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
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 regulators 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)
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