Which is perceived today by investors as something of a joke, in that the cost of insuring Dexia's subordinate debt implies that providers of this subordinated debt are facing losses of 35%.

BBC: Can we afford to heap bank losses on creditors?

European policy makers are considering a host of proposals to eliminate implicit government guarantees, including a new resolution regime, turning some liabilities into bail-in debt that will automatically take losses, depositor-preference regimes that would subordinate unsecured bondholders, and U.K.-style plans to ring-fence certain activities.

WSJ: Agenda: Basel III��Don't We Have Enough Problems?