‘Bail-in’ rather than bailout, says European markets group

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A European financial markets lobby group on Thursday proposed a form of debt-to-equity conversion as a means to avert expensive taxpayer-funded bailouts.

The Association for Financial Markets in Europe (AFME), the lobby group, advocated the use of so-called "bail-in capital", where debt is converted to equity at the behest of regulators, as a means of recapitalising troubled firms without drawing on government funds.

If a regulator judges a firm to be failing and a bail-in needed to provide

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